World Bank downsizes global growth forecastJanuary 14, 2015 - 10:29 AMT PanARMENIAN.Net - The World Bank has cut its global growth forecast, warning the U.S. alone cannot drive an economic recovery, BBC News reports. In its bi-annual report, the Bank predicted global growth of 3% this year and 3.3% next year, below its June forecast of 3.4% and 3.5% respectively. "The global economy is running on a single engine...The American one. This does not make for a rosy outlook," chief economist Kaushik Basu warned. However, it said lower oil prices would benefit some countries. "The lower oil price, which is expected to persist through 2015, is lowering inflation worldwide and is likely to delay interest rate hikes in rich countries," said Basu. "This creates a window of opportunity for oil-importing countries, such as China and India; we expect India's growth to rise to 7% by 2016," he added. However, the Bank warned that lower oil prices would hurt growth in countries which export oil, such as Russia, weighing on its global growth predicitions. The World Bank expects the Russian economy to contract by 2.9% this year, and to grow just 0.1% in 2016. In contrast, it said economic activity in the U.S. and the UK was "gathering momentum" as interest rates remain low. But it said the lingering "legacies of the financial crisis' meant the recovery had been "sputtering" in the eurozone and Japan. The Bank warned low inflation could persist in the eurozone, and forecast growth of 1.1% in 2015, rising to 1.6% in 2016-17. In Japan, it expects growth to rise to 1.2% in 2015 and 1.6% in 2016. "The gobal economy is at a disconcerting juncture," Basu added. Related links: Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | Viva-MTS: Tech solutions to modernize infrastructure of border village The border village has been the focus of Viva-MTS and the Foundation for the Preservation of Wildlife and Cultural Values since 2015. Ucom's fixed network launched in Artashat To mark this occasion, the company has introduced a special offer exclusively for Artashat residents. “By Your Side”: IDBank's new support program for displaced Artsakh citizens IDBank is launching a long-term social support program for forcibly displaced Artsakh residents. The Power of One Dram to benefit Road of Life charity The companies inform that the May beneficiary of The Power of One Dram is the “Road of Life” charitable organization. |