Reported 7 months ago
The World Bank has increased its global economic growth forecast for this year to 2.6%, primarily due to the strong growth of the U.S. economy. However, the World Bank also warns that climate change, war, and high debt issues will jeopardize poverty-ridden countries with the majority of the world's population. While the U.S. economic growth forecast was raised from 1.6% to 2.5%, growth predictions for countries in Sub-Saharan Africa, the Middle East, and North Africa were lowered. The World Bank Chief Economist stated that although the global economy is stabilizing beyond expectations, it still lags behind pre-pandemic levels, especially for the smallest and poorest economies. China's economic growth forecast for 2024 was raised to 4.8%, while Japan's was lowered to 0.7%. The Eurozone's forecast remained at 0.7% due to high energy costs and weak industrial output. The World Bank highlighted the risks brought by weak global trade, predicting the five years from 2020 to 2024 to be the worst for trade growth since the 1990s, primarily due to increased trade restrictions and policy uncertainties.
Source: YAHOO