It’s good to be back at the Peterson Institute. I’m eager to hear your views on the challenging subjects of growth and development. It’s a timely discussion, given the many immediate challenges facing the world, including Brexit, negative interest rates, trade frictions, and rising poverty rates in many developing countries. There’s a range of development issues to tackle, including barriers facing the private sector, full inclusion of women, and severe problems in health, education, the environment and infrastructure, to name several.
Current Slack in Global Economy Expected to Fade
WASHINGTON, January 9, 2018— The World Bank forecasts global economic growth to edge up to 3.1 percent in 2018 after a much stronger-than-expected 2017, as the recovery in investment, manufacturing, and trade continues, and as commodity-exporting developing economies benefit from firming commodity prices.
However, this is largely seen as a short-term upswing. Over the longer term, slowing potential growth—a measure of how fast an economy can expand when labor and capital are fully employed—puts at risk gains in improving living standards and reducing poverty around the world, the World Bank warns in its January 2018 Global Economic Prospects.