The World BANK is downgrading its 2016 global growth forecast to 2.4 per cent from the 2.9 per cent pace projected in January. The move is due to sluggish growth in advanced economies, stubbornly low commodity prices, weak global trade and diminishing capital flows. According to the latest update of its Global Economic Prospects report, commodity-exporting emerging market and developing economies have struggled to adapt to lower prices for oil and other key commodities, and this accounts for half of the downward revision. Growth in these economies is projected to advance at a meagre 0.4 per cent pace this year, a downward revision of 1.2 percentage points from the January outlook.
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