Global economy projected to grow by 0.1 per cent

WINDHOEK, 15 AUG  – The global economy is projected to grow by 3.9 per cent in 2018, up from 3.8 per cent recorded in 2017.
This is according to the Governor of the Bank of Namibia, Ipumbu Shiimi, who said this is on account of favourable financial conditions and strong investment in both Advanced Economies (AEs) and Emerging Market and Developing Economies (EMDEs).
Shiimi said this during the fourth Monetary Policy announcement for 2018 in the capital on Wednesday.
He added that that key risks to the global outlook remain and include amongst other; increased levels of trade perfectionism, geopolitical tensions as well as the global impact of monetary policy normalisation.
Economic growth in key monitored economies also moderated during the first quarter of 2018, compared to the preceding quarter.
“Growth was mainly dragged down by slower growth recorded in AEs such as United Kingdom, Europe and Japan, mainly due to lower consumer spending and industrial production,” Shiimi noted.
He however added that the growth in the AEs is projected to improve to 2.4 per cent in 2018, compared to 2.3 per cent in 2017.
Additionally, EMDEs reportedly presented a mixed economic activity during the first quarter of 2018, where Russia and India registered the higher growth rates, whereas Brazil and South Africa recorded slower growth during the first quarter of the current year.
NAMPA