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World Bank lowers global economic outlook for 2015

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World Bank lowers global economic outlook for 2015

2014 growth came in under expectations as well.

According to the World Bank, the global economy is still struggling to gain momentum.

In its Global Economic Prospects report, issued Tuesday, the World Bank reported that annual global growth in 2014 was lower than initially expected, continuing a trend of such disappointments. Growth picked up slightly to 2.6%, from 2.5% in 2013, but the divergences in various regions was the true story.

"Global growth is expected to rise to 3.0% in 2015."

The United States and the United Kingdom have seen an upsurge in activity, while the EuroZone and Japan continue to sputter – largely due to the hangover from the financial crisis and structural obstacles. China, on the other hand, is undergoing what the Bank calls a “carefully managed slowdown.”

Overall, the report projects that global growth is expected to rise to 3.0% in 2015, and average about 3.3% through 2017. The 2015 projection is lower than the 3.4% growth rate forecasted in June. 

Kaushik Basu, Senior Vice President and Chief Economist at the World Bank, struck a cautious tone in commenting on the results.

“Worryingly, the stalled recovery in some high-income economies and even some middle-income countries may be a symptom of deeper structural malaise,” he said. “But there are some silver linings behind the clouds. The lower oil price creates a window of opportunity for oil-importing countries, such as China and India. What is critical is for nations to use this window to usher in fiscal and structural reforms, which can boost long-run growth and inclusive development.” 

For the full report, click here.

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