Skies darkening over global economy: World Bank

The World Bank has projected moderation of global growth from three per cent last year to 2.9 per cent in 2019, as one of its top officials described the current situation of the world economy as "darkening of the skies".

"Global growth is slowing and risks are rising. We think that skies are darkening over the global economy," World Bank Prospects Group Director Ayhan Kose told on Tuesday on the occasion of release of its 'Global Economic Prospects'.

According to the report, global economic growth is projected to soften from a downwardly revised 3 per cent in 2018 to 2.9 per cent in 2019 amid rising downside risks to the outlook.

International trade and manufacturing activity have softened, trade tensions remain elevated, and some large emerging markets have experienced substantial financial market pressures, it said.

The World Bank said growth among advanced economies is forecast to drop to two per cent in 2019.

Slowing external demand, rising borrowing costs, and persistent policy uncertainties are expected to weigh on the outlook for emerging market and developing economies.