‘No end in sight’ for global economic misery, warns World Bank

Saturday, April 9, 2016
By Paul Martin

Light at the end of the tunnel? While oil importers are still expected to enjoy a boost from oil, the World Bank is on course to slash its global growth forecasts as the outlook darkens

By Szu Ping Chan
9 APRIL 2016

he global growth slowdown has no end in sight as policymakers drag their heels on reforms and a “robot revolution” threatens living standards, the World Bank’s chief economist has warned.

Ahead of the International Monetary Fund and World Bank Spring meetings this week, Kaukshik Basu said he expected the global economy to expand by just 2.5pc this year.

This is down from the World Bank’s forecast in January of 2.9pc and well below the 4pc growth seen just before the crisis.

However, he was more upbeat about Britain’s prospects if it left the European Union, suggesting the country could thrive after a Brexit.

The chief economist indicated that Britain could be better off outside the EU if it forged new trade ties and cemented old ones.

Speaking in a personal capacity, Mr Basu said “short-term turbulence” could lead to “improved exports” in the long run.

“You would probably see a short-term fall in exports from the UK, a weakening in the pound, but that should then cause a pick-up in exports in the medium term,” he said.

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