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Financial crisis over, World Bank says, but risks remain
January 10, 2018, 3:15 pm

Global economic growth will hit 3.1 per cent in 2018, the World Bank says [Xinhua]

In what is a further testament to the strength and durability of emerging markets, the World Bank on Wednesday said that the projected global economic growth of 3.1 per cent in 2018 will largely be driven by these economies.

In its first report of the year, the World Bank said global growth is up from 3 to 3.1 per cent for the first time in nearly a decade, and that in the emerging markets alone the forecast for 2018 is 4.5 per cent.

It pointed to renewed global optimism for the first time since the financial crisis of 2008 and said that 2017 produced better-than-expected growth margins in key economies.

It said much of this was due to central banks in these countries and economic zones become less accommodative in policy-making.

China and India, both key BRICS members, continue to lead the world in economic growth with a 2018 forecast of 6.4 and 7.3 per cent, respectively.

China’s economic growth is expected to cool to 6.3 per cent in 2019, while India’s is believed to reach 7.5 in that year.

The is welcome news to Indian Prime Minister Narendra Modi who had been severely criticized for his demonitization campaign in fall 2016 as a principal reason for the economy lagging.

In the Eurozone, GDP growth for 2018 is forecast at 2.1 per cent, slightly lower than America’s 2.2 per cent for the same year.

African economies are also forecast to expand their growth. Egypt, for example, is forecast to grow from 4.2 per cent in 2017 to 4.5 per cent in 2018.

Chad, where anti-ISIL and anti-AlQaeda campaigns seem to be stabilizing the country, is expected to emerge from 2.7 per cent contraction in 2017 to 2.9 per cent GDP growth this year.

In Latin America, BRICS member Brazil is expected to double its GDP growth from 1 to 2 per cent in 2018.

Russia holds steady at 1.7 per cent growth this year, while South Africa will see a slight nudge to 1.1 per cent growth.

The BRICS Post

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