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World Bank Cuts Global Growth Outlook as Rich Economies Stumble

  • Development lender slashes GDP forecasts for U.S., Japan
  • Commodity exporters struggle to adjust to low prices
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World Bank Cuts 2016 Global Growth Forecast to 2.4%

The World Bank cut its outlook for global growth as business spending sags in advanced economies including the U.S., while commodity exporters in emerging markets struggle to adjust to low prices.

World gross domestic product will grow by 2.4 percent this year, an “insipid” pace that’s unchanged from 2015 and down from the 2.9 percent estimated in January, the Washington-based development bank said Tuesday in its semiannual Global Economic Prospects report. Growth will pick up to 2.8 percent in 2017, the lender projected.