World Bank cuts 2016 global growth forecast to 2.4 percent

According to the June 2016 Global Economic Prospects (GEP) report released yesterday, the World
Bank revised its 2016 global growth forecast down to 2.4 percent from the 2.9 percent pace projected
earlier in January. The move is due to sluggish growth in advanced economies, stubbornly low
commodity prices, weak global trade, and diminishing capital flows.

Commodity-exporting emerging market and developing economies have struggled to adapt to lower
prices for oil and other key commodities. Growth in these economies is projected to advance at a meager
0.4 percent pace this year, whereas growth in commodity importers has been more resilient.

Projections are subject to substantial downside risks, including additional growth disappointments in
advanced economies or key emerging markets and rising policy and geopolitical uncertainties. In an
environment of weak growth and eroding policy buffers, structural reforms have become even more
urgent.

The full report, individual country growth forecasts, associated charts and data and more can be
downloaded at
www.worldbank.org/gep


June 8, 2016



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