The global economy remains weaker than before the pandemic

The US economy has returned to a stronger-than-expected position. In this year 2024
The global growth outlook is little changed. However, the overall economic growth till 2026 will be much lower than before the corona pandemic.

According to the World Bank’s Global Economic Growth Forecast Report, the world economy can avoid a third consecutive decline in economic growth. After Corona, the economy turned around in 2021. Then in 2023, the world economy grew by 2.6 percent, which will continue in 2024.

This forecast is zero and two percent higher than in January.

World Bank Deputy Chief Economist Ayhan Koz said high interest rates have brought inflation under control. It has not had any negative impact on other major economies including the United States. The labor market was also right. But the bad news is that everything is moving slowly.

The World Bank forecasts growth of 2.7 percent in 2025 and 2026, much lower than the pre-coronavirus average of 3.1 percent.

Moreover, the company has also predicted that the interest rate will double in the next three years compared to 2000-2009. On the one hand, as the growth will be slow, the emerging economies will be under pressure.

The World Bank report also said that growth in countries that are home to 80 percent of the world’s population will remain weaker than before the pandemic until 2026.

Source: Reuters