World Bank downgrades 2017 global economic growth outlook to 2.7%

Altogether, these economies account for more than one-third of global GDP and around three-quarters of the world’s population and poor.The World Bank said it had revised its growth forecasts for the United Kingdom in both 2017 and 2018 sharply down, despite the stronger than expected performance of the economy since the Brexit vote last June. At the same time though, it revised up its 2016 growth forecast to 1.8 per cent on the back of stronger than expected growth in the second quarter of the year.WB chief economist Paul Romer emphasised the need for offering the private sector more opportunities to invest with confidence so that new capital can plug into the infrastructure of global connectivity.Growth will however encompass nearly all major regions among emerging and developing economies.More specifically, a one percent increase in U.S. growth would prompt a boost of 0.8 percent to advanced economies, as well as a 0.6 percent rise in emerging markets and developing economies after only a year.According to it, world economic growth is projected to pick up to 2.7 percent in 2017 from a sluggish rate of 2.3 percent in the year just ended. The upswing is largely attributed to “modestly rising commodity prices”, the report said.Nigeria will rebind from the recession and grow at a 1 per cent pace, while Angola will expand at a 1.2 per cent pace.It is expected that the remittance impact of the large number of outmigration from Bangladesh in fiscal 2015-16 will start happening a few months from now, helping stem the precipitous decline experienced recently. For Bulgaria, the growth rate is projected at 3.2%.”In the Philippines, growth is projected to accelerate to 6.8 percent on average in 2017-19, supported by ongoing infrastructure projects, strong consumption, buoyant inflows of remittances and strong revenue from services exports”, the report read.In addition to the price of commodities, the “launching of favorable company-friendly reforms and focused on the market” contributed to improve the forecasts on Brazil.U.S. President Barack Obama is leaving his Republican successor Donald Trump with a much better economy than George W. Bush left him.Oil prices are expected to go up but, according to the bank, the oil-importing countries, such as Morocco, Jordan and Tunisia, should be the ones registering higher economic growth. A 1% increase in USA growth could boost growth after one year by 0.8% in other advanced economies, and by 0.6% in emerging economies.