The World Bank has revised its global economic growth forecast for this year, predicting a 2.6% expansion, up from the 2.4% projected earlier. This aligns with last year’s growth rate. Despite this improvement, overall growth remains slow by historical standards, with low-income countries particularly struggling due to high debt levels and interest rates. Trade barriers and ongoing conflicts in Ukraine and Gaza also pose significant challenges to global prosperity. A notable factor in the revised forecast is stronger-than-expected growth in the United States, which contributes significantly to the improved outlook. The U.S. economy is now expected to grow by 2.5% in 2024, a substantial increase from the previously predicted 1.6%. The World Bank highlighted the resilience of both the global and U.S. economies in the face of high interest rates aimed at controlling inflation. Although inflation has decreased, it remains above desired levels, suggesting central banks might maintain high interest rates longer, which could potentially slow economic growth.

Emerging markets and developing countries are projected to grow at 4% this year, a slight decrease from last year. China is facing economic challenges, with growth expected to slow to 4.8%. Other regions, including Latin America and sub-Saharan Africa, also face slower growth. In Europe, growth in the eurozone is expected to remain weak due to the effects of the Russia-Ukraine conflict. Japan’s economy is also forecast to slow down due to weak consumer spending and exports. Global trade growth is anticipated to be minimal, which could further hinder economic expansion. The World Bank emphasizes the need for international cooperation to address these trade issues rather than increasing barriers.