Global Economic Prospects, June 2018

Global Economic Prospects is a World Bank Group Flagship Report. Published semiannually, the report includes analysis of topical policy challenges faced by developing countries through in-depth research in the January edition, and shorter analytical pieces in the June edition. Global growth is projected to strengthen in 2018-19, in line with January forecasts. In emerging market and developing economies (EMDEs), growth is predicted to recover in 2017-19, as obstacles to growth in commodity exporters diminish amid moderately rising commodity prices, and activity in commodity importers remains robust. Risks to the global outlook remain tilted to the downside. These include increased trade protectionism; elevated economic policy uncertainty; the possibility of financial market disruptions; and, over the longer term, weaker potential growth. A policy priority for EMDEs is to rebuild monetary and fiscal space that could be drawn on were such risks to materialize. Over the longer term, structural policies that support investment and trade are critical to boost EMDE productivity and potential growth.