WASHINGTON, DC: January 06, 2016. The World Bank is forecasting a rise in global GDP from 2.4 percent in 2015 to 2.9 percent this year as advanced economies gain speed to offset weak growth among major emerging markets.
Developing economies are forecast to expand by 4.8 percent in 2016 - less than expected earlier but up from a post-crisis low of 4.3 percent in the year just ended. Growth is projected to slow further in China, while Russia and Brazil are expected to remain in recession in 2016, according to the World Bank’s latest Global Economic Prospects report.
The bank says South Asia, led by India, is projected to be a bright spot this year with growth rising to 7.3 percent from 7.0 in 2015. The region is a net importer of oil and will benefit from lower global energy prices.
The report notes the recently negotiated Trans-Pacific Partnership (TPP) “could provide a welcome boost to trade” - a view echoed by the U.S. National Association of Manufacturers (NAM) which has declared its support for the TPP: “Open markets encourage cooperation and prosperity among nations and governments, rather than conflict,” said NAM president and CEO Jay Timmons.
“We recognize this agreement is not perfect, and there are some principled objections to the TPP, so the NAM will continue to work closely with its members to address remaining barriers, to raise standards, to promote the rule of law and to further level the playing field for all. Ultimately, the TPP is a significant improvement over the status quo—for manufacturers and for the broader economy,” added Timmons.
NAM is the largest manufacturing association in the U.S., representing a sector that employs more than 14 million people, contributes US$2.09 trillion to the country's GDP, and accounts for more than 75 percent of private-sector research and development.