Global economic growth prospects for 2017 also remain well below pre-crisis trends, and a protracted period of slow productivity growth and feeble investment weigh on the longer-term potential of the global economy.
The revised forecast reflects significant downward adjustments in the growth rates of many countries in Africa, the Commonwealth of Independent States (CIS), and Latin America and the Caribbean, where tighter policy stances have exacerbated the effects of a series of adverse shocks.
As a whole, economic growth in developing nations in 2016 is unlikely to exceed the 3.8 per cent growth seen in 2015.
The momentum of growth slowed significantly in some large developed economies towards the end of 2015.
In the US, GDP growth is expected to reach just 2.2 per cent in 2016. GDP growth in Japan has exhibited significant volatility in recent quarters, and the economy remains plagued by weak household consumption.
Global GDP growth is forecast to average 0.5 per cent in both 2016 and 2017. (SH)
Fibre2Fashion News Desk – India