Bank Downgrades Global Growth for 2016 – Commodity Exporters are Expected to Grow 5.4% Less than Importers

 World Bank Imports and Exporter GDP Growth

The World Bank released its economic growth outlook for 2016 Tuesday, reducing its expectations from earlier this year. The bank anticipates global economic growth of 2.4%, down from 2.9% in January. 40% of that downward revision is due to commodity-exporting emerging markets and developing economies which are “[struggling] to adapt to lower prices for oil and other key commodities,” the bank said.

Emerging markets and developing economies are forecast to grow by 3.5% this year, slightly below average. Within that group, however, growth trends vary greatly depending on whether or not the country is a commodity importer or exporter. Importers are expected to see steady growth of 5.8%, but exporters struggling with low commodity prices are forecast to grow just 0.4% in 2016.

Also adding to the downgraded global growth in the World Bank’s most recent forecast are sluggish growth in advanced economies, weak global trade, and diminishing capital flows.

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