Downside risks have become more acute and include the possibility of disorderly financial market movements and an escalation of trade disputes.
THE WORLD BANK expects the Philippines to sustain above-average economic growth in the next two years despite a global slowdown triggered largely by the trade spat between the world's two biggest economies.
For the World Bank, growth in emerging market and developing economies would be a "weaker-than-expected" 4.2 percent this year, outpacing a drop to 2 percent across advanced economies.
The bank said sub-Saharan Africa's growth outlook was predicated on diminished policy uncertainty and improved investment in large economies, together with continued robust growth in non-resource intensive countries.
"In Russia, growth has been resilient, supported by private consumption and exports", the World Bank writes in a report published Tuesday.
Angola's GDP is forecast to grow 2.9% as the oil sector recovers with new oil fields coming on stream and as reforms bolster the business environment. South Africa is projected to accelerate modestly to a 1.3% pace, amid constraints on domestic demand and limited government spending.
The report sharply downgraded the growth forecasts for key emerging market economies like Mexico, South Africa and Russian Federation, as well as for crisis-struck countries Turkey and Argentina.
"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", she said.
"We are facing a more hard period for the global economy and the volatility in the financial markets certainly gave us that signal recently", World Bank Chief Executive Officer Kristalina Georgieva told reporters Tuesday on a conference call.
Rising interest rates are also pinching emerging-market governments and companies that borrowed heavily when rates were ultra-low in the aftermath of the 2007-2009 Great Recession. It committed almost $64 billion in loans in the fiscal year ended June 30 last year.
Growth of the world economy is expected to slow to 2.9% this year, and 2.8% in 2020, slightly below the previous forecast, and the estimates for almost all regions and countries were downgraded. But its growth is forecast to fall to 7 per cent in the current fiscal year.
Japan's economy will grow 0.9% this year, up 0.1 point from six months ago.
In South Asia, Pakistan's growth rate is forecast to fall drastically from last fiscal year's 5.8 per cent to 3.7 per cent this fiscal year "as financial conditions tighten in the face of rising inflation and external vulnerabilities".
In the case of the Philippines, a developing economy, the World Bank said its GDP would likely grow at 6.5 percent this year.