Global economic growth is forecast to accelerate moderately to 2.7 per cent in 2017 after a post-crisis low last year as obstacles to activity recede among emerging markets and developing economy commodity exporters.
Domestic demand would remain solid among emerging and developing commodity importers, the World Bank said in a report released on Tuesday.
Growth in advanced economies was expected to edge up to 1.8 per cent in 2017, the World Bank’s January 2017 Global Economic Prospects report available to the Ghana News Agency said.
The report said fiscal stimulus in major economies, particularly in the United States, could generate faster domestic and global growth than projected, although rising trade protection could have adverse effects.
It said growth in emerging market and developing economies as a whole should pick up to 4.2 per cent this year from 3.4 per cent in 2016, amid modestly rising commodity prices.
Nevertheless, it said the outlook is clouded by uncertainty about policy direction in major economies.
It noted a protracted period of uncertainty could prolong the slow growth in investment that is holding back low, middle, and high income countries.