Growth in emerging market and developing economies is expected to accelerate this year to 4.1 per cent.
The World Bank, which disclosed this in its January 2020 Global Economic Prospects, added that “this rebound is not broad-based; instead, it assumes improved performance of a small group of large economies, some of which are emerging from a period of substantial weakness.”
The bank explained that about a third of emerging market and developing economies are projected to decelerate this year due to weaker-than-expected exports and investment. The World Bank Group Vice President for Equitable Growth, Finance and Institutions, Ceyla Pazarbasioglu, advised that “with growth in emerging and developing economies likely to remain slow, policymakers should seize the opportunity to undertake structural reforms that boost broad-based growth, which is essential to poverty reduction.
“Steps to improve the business climate, the rule of law, debt management, and productivity can help achieve sustained growth.”
Also, the Bank forecast global economic growth to edge up to 2.5 per cent in 2020 as investment and trade gradually recover from last year’s significant weakness but downward risks persist.