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World Bank predicts that global economic growth will remain at 2.6% this year, stabilizing for the first time in three years

The world economy is expected to grow 2.6% this year, according to World Bank projections, which highlight the fact that the number is “stable” for the first time in the last three years, marked by the pandemic and the beginning of the war in Ukraine.

“The expectation for 2024 is that, for the first time in three years, the global economy will stabilize, although at a level considered low based on recent historical patterns,†can be read in the document shared this Tuesday.

For the following two years, 2025 and 2026, the World Bank predicts growth of 2.7%. This means that the June projections underwent few changes compared to January, and now the institution is slightly more optimistic (0.2 percentage points) for the development of GDP (domestic product gross) during this year.

According to the institution, “over the period 2024-2026, countries that collectively represent more than 80% of the global population and GDP would grow at a slower pace than in the previous decade à covid-19†.

The United States (2.5%) will grow at a rate almost four times faster than the Euro Zone (0.7%), and economies such as China (4.8%) or Brazil (2%) should It will grow at a good pace, while others like Argentina (-3.5%) will continue to shrink.

Russia, even with all the economic sanctions applied by the European Union and the United States and in the middle of a war, will expand 2.9% this year, 1.4% in 2025 and 1.1% in 2026.

As for global inflation, the World Bank expects it to fall to 3.5% in 2024 and 2.9% in 2025, a rate of decline that is “slower than predicted just six months ago†€.

“As a result, many central banks are expected to remain cautious in reducing official interest rates†and “global interest rates are likely to remain elevated in comparison o to the standards of recent decades – with an average of around 4% between 2025 and 2026, approximately double the average of 2000 – 2019 -, he details.

In general terms, developing economies are expected to grow 4%, on average, between 2024 and 2025, “a little slower†than in 2023, with growth being 5% in 2024, above from 3.8% in 2023.

“However – notes the World Bank in the report released today – growth forecasts for 2024 reflect the regressions observed in three out of four low-income economies since January.†.

In advanced economies, growth is expected to remain stable at 1.5% in 2024, before rising to 1.7% in 2025.

This year, the World Bank’s expectation is that “one in four developing economies will remain poorer than it was in 2019”, before the pandemic, with this proportion being “twice as high in the case of of countries affected by fragility and conflicts”.

Source

Francesco Giganti

Journalist, social media, blogger and pop culture obsessive in newshubpro

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