The World Bank raised its global growth projections, saying 2018 is on track for the first time since the financial crisis to operate at or near full capacity.
The global economy is forecast to grow 3.1 percent this year instead of 2.9 percent projected in June, the bank said its Global Economic Prospects, released Wednesday.
The outlook for 2019 was lifted to 3.0 percent from 2.9 percent. For 2020, the bank forecast 2.9 percent expansion.
“The broad-based recovery in global growth is encouraging, but this is no time for complacency,” World Bank Group President Jim Yong Kim said.
“If policy makers around the world focus on these key investments, they can increase their countries’ productivity, boost workforce participation, and move closer to the goals of ending extreme poverty and boosting shared prosperity.”
Barring major additional policy changes, U.S. growth is expected to reach 2.5 percent in 2018, above previous expectations, and then to moderate to an average of 2.1 percent in 2019-20.
Eurozone GDP growth is expected to be 2.1 percent in 2018, down from 2.4 percent in previous year but notably stronger than previously projected 1.5 percent. It was then forecast to average 1.6 percent in 2019-20.
Japan’s growth is expected to slow to 1.3 percent in 2018, as fiscal stimulus is withdrawn and export growth moderates. GDP growth was seen at 0.8 percent in 2019 and 0.5 percent in 2020.
The lender said China’s growth reached 6.8 percent in 2017, up from the previous projection of 6.5 percent. Growth was forecast to edge down in 2018 to 6.4 percent as policies tighten, and average 6.3 percent in 2019-20.
India’s GDP growth was expected to rise to 7.3 percent in 2018 and then to 7.5 percent each in 2019 and 2020. The estimate for 2018 was revised down from 7.5 percent and that for 2019 from 7.7 percent.
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