storm clouds over city
© Reuters / Aly Song
The growth of the global economy is expected to decelerate to 2.9 percent this year compared with three percent in 2018, the World Bank said in a report, citing elevated trade tensions and international trade moderation.

A slump in the global economy will continue in the coming year, with 2020 growth estimated at 2.8 percent, according to the report.

"At the beginning of 2018 the global economy was firing on all cylinders, but it lost speed during the year and the ride could get even bumpier in the year ahead," World Bank Chief Executive Officer Kristalina Georgieva said.

"As economic and financial headwinds intensify for emerging and developing countries, the world's progress in reducing extreme poverty could be jeopardized. To keep the momentum, countries need to invest in people, foster inclusive growth, and build resilient societies," she explained.

Growth in emerging market and developing economies has lost momentum and is projected to stall at 4.2 percent this year, the bank said, adding that the pickup in economies that rely heavily on commodity exports is likely to be much slower than hoped for.

The report, called 'Storm clouds are brewing for the global economy', singled out factors of slowed growth as trade disputes between China and the US, increasing debt among the developing economies, and increasing cost of debt servicing. It noted that these may have an unprecedented economic effect on the majority of African countries, as demand in China, which is the biggest buyer for the commodities coming from these countries, is slowing amid the trade dispute.

Growth in the United States is likely to slow to 2.5 percent this year from 2.9 percent in 2018, while China is expected to grow at 6.2 percent in the year compared with 6.5 percent in 2018, according to the World Bank.