World Bank downgrades its forecast for global economy

World Bank downgrades its outlook for world economy, foreseeing slowest year since 2016

WASHINGTON -- The World Bank is downgrading its forecast for the global economy in light of trade conflicts, financial strains and unexpectedly sharp slowdowns in wealthier countries.

The bank, an anti-poverty agency, expects the world economy to grow 2.6% this year. That would be the slowest calendar-year growth since 2016, and it is down from the 2.9% expansion the agency forecast in January.

The World Bank downgraded every major region, though it kept its 2019 forecast for U.S. growth at 2.5%. In the 19 countries that use the euro currency, growth is forecast to slow to 1.2%, down from 1.8% last year and the 1.6% the World Bank expected in January.

Slowed by the Trump administration's trade war with China, global trade is expected to expand just 2.6% this year.