World Bank Publishes Global Economic Prospects 2016

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Updated: June 10, 2016

The World Bank has published its Global Economic Prospects dated June 2016 with a general overview that the growth prospects have weakened throughout the world economy. The 194-page document has noted that global growth for 2016 is projected at 2.4 percent, a figure unchanged from what they have dubbed, “the disappointing pace of 2015”.  In the report’s summary, it stated that since the publication of the January 2016 Global Economic Prospects, weakness in the global economy has persisted and risks have become more pronounced.  As it relates to the Latin America and the Caribbean, the World Bank noted that regional output shrank 0.7 percent in 2015, broadly in line with January estimates, after expanding 1.0 percent in 2014. GDP was dragged down by depressed commodity prices, tighter regional monetary conditions, and domestic challenges among the region’s largest economies. Brazil and particularly, Venezuela are both mired in deep recessions, while Argentina has embarked on Macro-economic policy reforms aimed at more sustainable growth (World Bank 2016d). Mexico, Central America, and the Caribbean expanded steadily in 2015, boosted by robust growth in exports and tourism. As regional weakness carries over to 2016, and with Brazil expected to experience another year of severe contraction, economic activity in Latin America and the Caribbean is expected to shrink 1.3 percent (excluding Brazil, regional growth in 2016 is projected at 0.5 percent). A gradual recovery in 2017 -18 will be supported by strengthening net exports and an easing of substantial domestic obstacles.  This year marks the 25th anniversary of the Global Economic Prospects, a World Bank Group flagship report prepared by the Prospects Group in the Development Economics Vice Presidency.  Since its inception in 1991, the Global Economic Prospects report has examined international economic developments and the outlook for growth, with a special focus on emerging market and developing economies. It has analysed a wide range of topical macroeconomic, financial, and structural policy challenges these economies face.