Economic growth in various global regions, including Europea and Central Asia, is expected slow in 2019 amid trade uncertainties and a global economic slowdown, the World Bank said.
The body estimated growth in developing East Asian and Pacific economies to decelerate to 5.8% in the year from 6.3% in 2018, before slowing further to 5.7% in 2020 and 5.6% in 2021. Export growth, manufacturing activity and investment growth have declined in the region, as the U.S. and China remain locked in a trade dispute.
In addition, mounting debt burden and sudden changes in global financial conditions could weaken credit growth in the region, weighing further on investment and economic growth.
The World Bank estimated Europe and Central Asia to expand at a four-year low estimated rate of 1.8% in the year, down from 3.2% in the previous year, led by a slowdown in Turkey and the Russian Federation. Worsening demographic trends add to the ongoing concerns about the global downturn and flagging industrial activity, the institute said.
For the Middle East and North Africa region, the World Bank expects growth to ease to 0.6% from 1.2% in 2018, before picking up to 2.6% in 2020 and 2.9% in 2021. The region's economic outlook is subject to "substantial downside risks," most notably intensified global economic headwinds and rising geopolitical tensions, he World Bank said.
For Sub-Saharan African economies, however, the body projects growth to accelerate to 2.6% in the year from 2.5% in 2018.
