Page 25 - ARUBA TODAY

BUSINESS Friday 10 January 2020
A25

World Bank sees modest global 2020 rebound but trade a risk

By MARTIN CRUTSINGER 1.1% growth is expected
Associated Press to be followed by further
WASHINGTON (AP) — The scant gains of 1% this year
World Bank says the glob- and 1.3% in both 2021 and
al economy should see a 2022.
modest rebound in growth The new forecast projects
this year. China, the world's second
But the 189-nation lending largest economy, will grow
institution is cautioning that at steadily slower rates of
a number risks could upend 5.9% this year, 5.8% next
its forecast, including the year and 5.7% in 2022. That
possibility of renewed trade would mark the slowest
hostilities between the growth period for China
world's two biggest econo- since the early 1990s.
mies, the United States and Economic growth in both
China. China and the United States
In an updated economic has been impacted by the
outlook released Wednes- uncertainty generated by
day, the World Bank fore- the punitive tariffs both
cast the global economy countries have imposed on
will grow 2.5% this year, each other's goods.
up only slightly from 2.4% Growth for all advanced
growth in 2019. That had economies is expected to
been the weakest per- In this Oct. 19, 2019, file photo, members of the International Monetary and Financial Committee slip to 1.4% this year, down
formance since the 2008 (IMFC) meet at the World Bank/IMF Annual Meetings in Washington. from 1.8% last year, reflect-
financial crisis and a sig- Associated Press ing continued softness in
nificant slowdown from manufacturing in many
growth rates above 3% in growth by 0.2 percentage confidence, trade and in- Those growth rates are sig- parts of the world that has
2017 and 2018. points over the next two vestment which are all criti- nificantly below the 3%-plus caused businesses to pull
The bank's revised outlook years to moderate rates cal for growth."' growth President Donald back on their plans to ex-
represents a downgrade of 2.6% in 2021 and 2.7% in For the United States, the Trump has promised to de- pand and modernize pro-
from its last forecast in June 2022. World Bank sees gross do- liver with his economic pro- duction facilities.
when it had expected "Downside risks persist. The mestic product growth gram of tax cuts and de- Growth in emerging econ-
growth to be 0.2 percent- recovery is fragile," said slowing from 2.3% in 2019 to regulation. omies is expected to ac-
age-points higher this year. World Bank Vice President 1.8% in 2020 and then slow- For Europe, the World Bank celerate to 4.1% this year,
The forecast also trimmed Ceyla Pazarbasioglu. "Un- ing further to 1.7% in both has an even gloomier out- but the acceleration will
its expectation for global certainty has weighed on 2021 and 2022. look. Last year's minuscule not be broad based. q

US consumers took it easy on their credit cards in November

By MARTIN CRUTSINGER that followed a strong gain debt to finance consumer to actions by the Trump nomic slowdown.
Associated Press of $7.9 billion in October. spending, which accounts administration to pressure The expectation is for a fur-
WASHINGTON (AP) — U.S. November's was the weak- for 70% of U.S. economic China and other nations to ther slowdown in growth
consumers slowed their est showing since credit activity. abandon trade practices this year. Analysts, howev-
borrowing in November, card debt fell by $2.8 billion Forecasters believe the the administration sees as er, are counting on low un-
mainly by piling up less in March. overall U.S. economy harmful to U.S. workers. employment to provide the
credit card debt. But borrowing for auto slowed to growth of around The rising trade uncertainty fuel for consumers to keep
The Federal Reserve said loans and student debt rose 2.3% in 2019 after a strong weakened U.S. manufac- spending.q
Wednesday that consumer $14.9 billion in November. 2.9% gain in 2018. The slow- turing that was already
credit rose by a seasonally That was up from an Octo- down was linked in part hobbled by a global eco-
adjusted $12.5 billion in No- ber increase of $11.1 billion
vember, down from a gain and was the strongest ad-
of $19 billion in October. vance since August.
The sharp slowdown reflect- Consumer borrowing is
ed a $2.5 billion decline in closely watched for signals
borrowing in the category it can provide about Ameri-
that covers credit cards cans' willingness to take on