The global economy is weakening, according to a report from the World Bank.
The bank said it now expects growth of 2.6% for 2019 edging up to 2.7% the following year.
Trade conflict has been cited as a major factor behind the weaker growth, in particular the tension between the US and China, who together account for a third of global economic activity.
In January, the World Bank changed its outlook for 2019 from 3% growth to 2.9%.
World Bank’s economists say the slowdown is widespread and will impact many countries.
Markus Kuger, Lead Economist at Dun & Bradstreet, commented to TFT:
“It’s unsurprising that the World Bank has adjusted its economic growth forecast given the current international trade tensions and volatile economic environment. In the UK, the latest Purchasing Manager’s Index indicates a stagnating market and despite low unemployment levels, the Eurostat consumer confidence indicator is at its lowest level since 2013.
Dun & Bradstreet recently adjusted our country risk rating for the UK to ‘deteriorating’ and forecast reduced real GDP growth of 1.2% for 2019. Our analysis is based on growing political uncertainty following the resignation of the Prime Minister and the EU election results, and our baseline scenario is for a general election to take place before the October Brexit deadline. In a turbulent economic environment, it’s more important than ever for businesses to have a comprehensive view of their suppliers, customers and prospects to identify risk and capitalise on opportunities.”
