The World Bank raises its forecast for global economic growth for this year

The World Bank is raising its forecast for global economic growth in 2023, thanks mainly to better-than-expected growth in major economies such as the United States, the eurozone, and China. However, forecasts have been lowered for next year.

For the year, the institute now expects Washington to increase by 2.1 percent. In January this was still expected growth of 1.7 percent. In 2022, the global economy will grow by 3.1%.

The World Bank raised its forecast for the US economy for 2023 to 1.1% from 0.5% previously forecast. China, the world’s second largest economy, should now grow by 5.6 percent instead of the 4.3 percent previously forecast. For the Eurozone, it is now plus 0.4 percent. Stagnation was expected here.

But for 2024, the World Bank expects growth to be 2.4%. This was still 2.7 percent in January. The organization says the delayed effects of higher interest rates by the central bank in the face of high inflation will continue to create headwinds, as will tighter lending conditions. The World Bank also warns of negative consequences due to unrest in the banking sector.