A bullish report on growth
Mihir Kapadiaspan class="Apple-converted-space"> – CEOspan class="Apple-converted-space"> and Founder of Sun Global Investments
The World Bank came up with a bullish report on Global Growth. It predicted a rebound in trade growth from post-crisis lows should boost the global economy next year to its fastest pace in nearly seven years. It also forecasts global growth to hit 2.9 per cent in 2018, up from 2.7 per cent this year.
Stable commodity prices will allow Brazil, Russia, Nigeria and other major emerging markets to pull out of a two-year slump. Growth in the U.S. and Europe is also picking up as many of the world's most powerful economies finally show signs of escaping the legacies of the global financial crisis. The World Bank also predicted that global trade will grow 4 per cent this year, up from 2.5 per cent last year, the bank said. However, it also cautioned that downside risks dominate the outlook.
These risks include a build-up of emerging-market debt, notably in China which risks jeopardizing growth around the globe. Trade-war fears are also dogging the global economy.
Bank economists still see a risk the Trump administration's "America First" policies could trigger a tit-for-tat escalation in tariffs and other trade barriers in the U.S., China and other countries.