The World Bank Group President Jim Yong Kim has slashed its 2016 growth forecast by 0.5 per cent to 2.4 per cent. The Bank said it is critically important for governments to pursue policies that boost the economic growth and improve the livelihood of those living in extreme poverty.
The cut in forecast was due to advanced economies experiencing mediocre growth, while low commodity prices, weak global trade and stilted capital flows also impacted.
Commodity importing emerging markets are forecast to expand at a 5.8 per cent rate, slipping from the 5.9 per cent rate estimated for 2015, with low energy prices and modest recovery in advanced economies supporting economic activity.
In January, the World Bank cut its forecast to 2.9 per cent, citing disappointing growth in major emerging market economies including China and Brazil.