Baku, Azerbaijan, April 11
By Leman Zeynalova – Trend:
The growth of world economy will stand at 3.2 percent, Trend reports citing OPEC Monthly Oil Market Report (MOMR).
“Newly available data has confirmed the recently observed downward trend in global economic activities. This weaker than anticipated growth trend has led to a further downward revision of global economic growth for 2019, with growth now forecast at 3.2 percent, compared to 3.3 percent in the previous MOMR,” reads the report.
This slowdown in 2019 follows growth of 3.6 percent in 2018, according to the cartel.
“In particular, growth in OECD economies has slowed further, global trade has continued to decline and the outcome of the ongoing US-China trade negotiations and future developments related to further US trade-related initiatives remain unclear. In the OECD, all major key economies were revised down for 2019. Momentum in economic growth in the US continues, albeit at a slowing pace. The 2019 US growth forecast was revised down slightly to 2.4 percent, after growth of 2.9 percent in 2018. The Euro-zone’s 2019 growth was revised down to 1.2 percent, following growth of 1.8 percent in 2018,” said the report.
OPEC said that the 2019 growth forecast for Japan was revised down to 0.6 percent, compared to 0.8 percent in 2018.
“It is estimated that the OECD growth forecast will likely stabilize around the current forecast level of 1.7 percent for 2019, considerably lower than growth of 2.3 percent in 2018. In the emerging economies, the growth forecasts remain unchanged. China’s 2019 growth forecast remains at 6.1 percent, following growth of 6.6 percent in 2018. Some upside may still come from further fiscal and monetary stimulus in China, although as noted, trade related tensions continue,” reads the report.
The cartel said that India’s 2019 growth forecast is unchanged at 7.1 percent, compared to 7.3 percent in 2018.
“Brazil’s growth forecast remains at 1.8 percent in 2019, after growth of 1.1 percent in 2018. Russia’s growth forecast for 2019 remains unchanged at 1.6 percent, following growth of 2.3 percent in 2018. While the recent global economic growth slowdown appears to have stabilized to some extent, underlying risks remain and may further hinder 2019 global growth levels,” said the report.
Growth risks pertain to continued trade issues, ongoing challenges in several emerging and developing economies and high debt levels in several important economies, according to OPEC.
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