In its “Global Economic Prospects” report, the World Bank says global economy will grow 2.7% this year and 2.9% next year, better than last year’s 2.3%.
The World Bank report says emerging markets and developing economies will grow 4.2% in 2017 and 4.7% in 2018, compared with 3.4% last year.
These economies are projected to contribute this year, for the first time, for 60% of the global growth.
The World Bank retains its projections of 6.5% and 6.3% growth for the Chinese economy in 2017 and 2018.
The Indian economy is predicted to grow 7.6% this year, 0.6% more than last year as reform measures boost labor productivity.
According to the report, the Russian economy has recovered from crisis thanks to policy adjustments and weathering the adverse effects of record low oil prices.
The World Bank estimates developed economies will grow 1.8% this year and next year, slightly more than last year, citing the effects of low inflation and rising instability of policy adjustments.
The US economic growth rate is projected to be 2.2% in 2017 and 2.1% in 2018, but changes made by President Donald Trump’s administration could impact the world’s largest economy in unpredictable way.
While predicting that the US economy’s strong growth will provide momentum for global growth, the World Bank warns that the Federal Reserve Bank’s raising its prime interest rates and tightening financial conditions will negatively affect emerging economies which are dependent on external financing.
The World Bank is calling on developing economies to adopt supportive financial policies and ensure a rational balance between financial adjustments and reforms to spur growth.