Global Economic Prospects, June 2017

Global activity is firming broadly as expected. Manufacturing and
trade are picking up, confidence is improving, international financing
conditions remain benign, and commodity prices are stabilizing.
Growth in emerging market and developing economies (EMDEs) is set
to recover, as obstacles to growth in commodity exporters diminish,
while activity in commodity importers remains robust. Risks to the
global outlook remain tilted to the downside. These include increased
trade protectionism, elevated economic policy uncertainty, the
possibility of financial market disruptions, and, over the longer term,
weaker potential growth. A policy priority for EMDEs is to rebuild
monetary and fiscal space that could be drawn on were such risks
to materialize. Over the longer term, structural policies that support
investment and trade are critical to boost EMDE productivity and
potential growth.

In addition to discussing global and regional economic developments
and prospects, this edition of Global Economic Prospects includes
two Special Focus essays of critical importance for emerging and
developing economies: an analysis of fiscal positions in EMDEs and a
deeper look at the type of firms most affected by post-crisis trade
weakness.

Global Economic Prospects is a World Bank Group Flagship Report
that examines global economic developments and prospects, with
a special focus on emerging market and developing countries,
on a semiannual basis (in January and June). The January edition
includes in-depth analyses of topical policy challenges faced by these
economies, while the June edition contains shorter analytical pieces.