World Bank Cuts 2020 Global Growth Forecast to 2.5 Pct

Economy

Washington, Jan. 8 (Jiji Press)--The World Bank lowered its global economic growth forecast for 2020 to 2.5 pct from the June projection of 2.7 pct, citing slow recoveries in major economies.

But the bank still expects 2020 growth to outpace the preceding year's 2.4 pct, thanks to a "phase one" deal reached by the United States and China to settle their trade conflict.

Meanwhile, the international lending body kept unchanged its projection for Japan's growth at 0.7 pct, down from 1.1 pct in 2019, taking into account downward pressures from the consumption tax hike from 8 pct to 10 pct in October last year and sluggish exports.

U.S. growth this year is expected to slow sharply from the previous year's 2.3 pct to 1.8 pct, reflecting very weak manufacturing activities, trade policy uncertainty and a waning contribution from tax cuts.

The bank projects the Chinese economy to expand 5.9 pct in 2020 after growing 6.1 pct the previous year. Hit by a slowdown in labor productivity growth and other headwinds, such as contraction in exports to the United States, the world's second largest economy will register a pace of expansion below 6 pct for the first time since 1990.

[Copyright The Jiji Press, Ltd.]

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