The World Bank has reduced its outlook for global growth in 2019 from 2.9 percent in its January report to 2.6 percent in its latest assessment. That represents a three-year low, down from 3.0 percent growth in 2018.
In the June Global Economic Prospects report, the World Bank cited “heightened policy uncertainty,” especially regarding trade tensions, as one factor for revising its economic outlook lower.
The World Bank predicts 2.5 percent growth in the United States in 2019, with real GDP in China and the Eurozone slowing to 6.2 percent and 1.2 percent, respectively.
Overall, it sees economic growth of 1.7 percent for advanced economies in 2019, with 4.0 percent growth in emerging markets.
IHS Markit Canada’s manufacturing purchasing managers index reports activity on the Canadian manufacturing front declining at its fastest pace since December 2015. The headline index declined from 49.7 in April to 49.1 in May, led by the weakest sales and output growth in more than three years.
Canadian exports contracted for the fifth time in the past six months, but there was optimism that production would rebound in the months ahead. Also on the positive side, the unemployment rate declined to 5.4 percent in May, the lowest since the survey began in 1976, highlighting a still-tight labor market.