World Bank predicts solid 3.1% global growth in 2018

Associated Press

WASHINGTON

The World Bank predicts that the global economy will grow 3.1 percent this year, which would be its best showing in seven years. The U.S., the world’s largest economy, is expected to receive a boost from the $1.5 trillion tax cut package Congress approved last month.

The World Bank on Tuesday upgraded its global growth forecast for 2018 by 0.3 percentage point from the projection it made in June. It is also forecasting solid growth of 3 percent in 2019 and 2.9 percent in 2020, after similar 3 percent expansion in 2017.

The U.S. economy will grow 2.5 percent this year, the World Bank predicts, up 0.3 percentage point from its June estimate. Its forecast shows U.S. growth slowing to 2.2 percent in 2019 and 2 percent in 2020.

In its report released Tuesday, the World Bank credited the widespread global rebound, after years of tepid growth, to stronger investment, rising manufacturing activity and increased trade flows.