World Bank cuts global, US growth forecasts
In its latest Global Economic Prospects report, released earlier this month, The World Bank trimmed its global growth forecast, saying a confluence of events, from the Ukraine crisis to unusually cold weather in the United States, dampened economic expansion in the first half of this year.
The institution predicted the world economy would grow 2.8% this year, below its prior forecast of 3.2% made in January, but it expressed confidence activity was already shifting to more solid footing. The Bank also cut its growth forecast for the United States to 2.1% from 2.8% to account for the toll taken on growth by the weather at the start of the year. The US economy contracted for the first time in three years in the first quarter, but the Banks says it already appears to be rebounding. The latest US economic data are expected to be released this week.