The World Bank’s Global Economic Prospects Report reveals that global growth is weak and the global economy is not growing as fast as expected. Global growth is estimated at 2.6% in 2019, weaker than expected, and will only grow to 2.7% in 2020. This is the lowest estimate from the World Bank in 3 years.
Some causes for the weakened global economy may be the amassing government debt and the development of trade barriers. Ayhan Kose, the director of Development Economic Prospects for the World Bank believes that action is needed in order to stabilize the global economy.
One major hit the economy has faced is manufacturing slowdowns in multiple countries. Although there is no solution yet, chairman of the US Federal Reserve Jerome Powell is “closely monitoring” trade.