World Bank lowers its global growth forecast for 2019 to 2.6% (from 2.9%)

Forecasts from the World Bank slashed, they are citing the impacts of trade wars.

Media statement:
  • There’s been a tumble in business confidence
  • a deepening slowdown in global trade
  • and sluggish investment in emerging and developing economies
This is worrisome because subdued investment weakens the foundations for sustained growth.
The previous growth forecast from the bank was in January, a sluggish 2.9%
  • this June update is worse at 2.6%
  • All six global regions, East Asia and the Pacific; Europe and Central Asia; Latin America and the Caribbean; Middle East and North Africa; South Asia; and sub-Saharan Africa have lower forecasts. 
Oh, and the forecasts do not incorporate US threats to up tariffs on China to 25% nor last week’s threats of up to 25% tariffs on Mexico. Awesome. 
  • global economy’s growth will be the weakest since 2016
  • trade growth on track to be the weakest since the GFC
  • other factors  – financial market stresses, suboptimal business environments in many countries, and economies that were already slowing because of cyclical factors
Meanwhile, we get policy makers expressing the four letter word (hope).