Global growth will slow down in next two years as central banks increase interest rates and US cuts fiscal stimulus, Bloomberg informs with reference to World Bank.

World economy will grow by 3,1% this year and by 3% next year. It will slow down further in 2020.

Risks for global economy include rising interest rates on behalf of US Federal Reserve System, perspectives of trade war between US and China as well as elections of euro-skeptical government in Italy.

Tightening of fiscal conditions, in Bank’s opinion, the major risk for emerging markets and economies. However, there are no signs of approaching financial crisis there yet, despite recent volatility spike in Turkey and Argentina.

World Bank raised forecast for US economy growth rate to 2,7% up 0,2% in comparison to estimates made in January. Euro area countries’ growth will be at 2,1% this year and at 1,7% in 2019. Bank reduced forecast for Japan’s economy growth by 0,3% to 1%, as higher oil prices will influence incomes and fiscal tightening will limit further development.

As of China, then the economy of this country will develop with the rate of 6,5% this year. It is 0,1% lower than forecasted in January. Next year the growth will slow down to 6,3% and will be at 6,2% in 2020.