The World Bank has said that the global economy is set to post solid growth this year, amid improving world trade and better performance by large emerging markets.
It, however, said, key risks could still threaten the outlook. The international financial institution, in its report said, the seven largest emerging market economies India, China, Brazil, Mexico, Indonesia, Turkey and Russia remain the key engine for the world economy.
It said, As a group, emerging market and developing economies are expected to grow 4.1 per cent this year, led by India, which is expected to expand by 7.1 percent, and China, at 6.5 percent.
The report said, the rising trade protectionism and policy uncertainty, primarily in the United States, pose important cautions for the outlook. In addition, it said, restrictive US immigration policies could reduce growth. The UK exit from the European Union also poses risks to the outlook, especially given the unknown outcome.
The international body said, advanced economies are continuing to grow but at a more modest pace, with the United States expected to expand by 2.1 percent this year, the euro area by 1.7 per cent and Japan by just 1.5 per cent.
The report said, despite substantial policy uncertainty, the global economy still is expected to grow by 2.7 per cent for 2017, rising to 2.9 per cent in 2018 and 2019. It said, a recovery in industrial activity has coincided with a pick-up in global trade, after two years of marked weakness
For the first time in four years, the latest edition of the World Bank’s Global Economic Prospects has not downgraded the growth forecast.