WB: Continuing uncertainty after Brexit referendum may hurt global economy growth

The continuing uncertainty after Brexit referendum may hurt the global economy growth, according to the World Bank President Jim Yong Kim. Even before the referendum in UK, the World Bank lowered its forecast for global growth to 2.4% against 2.9% projected in January. Before heading the G20 meeting, Jim Yong Kim met with Chinese Premier Li Keqiang in Beijing, where proposed a series of structural changes in the healthcare system in the country, who will be able to save up to 3% of GDP. In Beijing, the President of the World Bank drew attention aloud denial of globalization in the West. Although a large volume of trade and free trade zones has helped some people to escape poverty, but the middle class in rich countries feel the decline in income.

“We actually thought that USA is solid, Eurozone improved and even Japan seemed presents little better”, said World Bank President in an interview. “Brexit was a great shock and still trying to understand exactly what the effects will be, but it seems global growth will again be frustrating”, added Jim Yong Kim.

The IMF Director Christine Lagarde also said that more must be done to be distributed more evenly the benefits of growth and openness of economies.

more recommended stories