The World Bank, in its latest report titled "Global Economic Prospects - Divergences and Risks", cut global growth forecasts citing low commodity prices, sluggish demand in advanced economies and weakening trade. 2016 global growth according to the World Bank is projected to rise 2.40%, down from January's estimates of 2.90%. China's growth is expected to remain steady at 6.70% while also maintaining India's growth rate at 7.60%. Brazil, Russia and Japan economies are expected to remain in recession.
In the US, decline in energy sectors and weak exports is expected to weigh on its GDP with the bank forecasting US growth to 1.90% for 2016. For the Eurozone, growth was slightly revised lower to 1.60%. The World Bank's estimates follow a similar trend from the International Monetary Fund (IMF), which in April projected the global economy to rise at a pace of only 3.20%. But the IMF and the World Bank’s reports do however point to the fact that there could be persistent economic weakness in Eurozone, Japan and the US to a certain extent. At the G7 summit in Japan, held in late May, world leaders gathered and agreed that fiscal stimulus spending and a coordinated global action to support growth was needed, but there hasn't been any significant follow through as of yet.
World Bank Cuts Global Growth Forecasts
Market Trends - 08/06/2016