The World Bank reduced its estimation for global growth for 2016, putting it at 2.4% from 2.9% in January, attributing it to weak demand in advanced economies, disappointing trade, dwindling capital flows, and low commodity prices.
Based on its Global Economic Prospects, the institution said commodity-exporting nations have experienced hardships due to lower commodity prices. The organization is awaiting these economies to expand at a 0.4% pace this year, previously 1.2%.
World Bank Chief Economist Kaushik Basu noted majority of East and South Asian countries are growing strongly, as well as other emerging nations worldwide.
But he warned the sudden increase of private debt in various developing and emerging countries can impact growth in the event non-performing bank loans surge.
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