The recession is over, according to the World Bank. For the first time in three years, the global economy has stabilised!
The World Bank has released a new report that global economic growth is stabilizing after the major shocks of recent years!
First comments
“Four years after the upheavals caused by the pandemic, conflict, inflation and monetary tightening, global economic growth appears to be stabilizing,” is the comment on the subject by Indermit Gill, Chief Economist and Senior Vice President of the World Bank.
Weak economies
Of course, weaker economies are still in danger. “The poorest among them – especially the 75 countries eligible for concessional aid from the International Development Association – will not be able to do so without international support,” says Indermit Gill.
Worldwide, global inflation is expected to fall to 3.5 percent, and despite its decline and more sluggish than expected, banks will accordingly be more cautious in lending, interest rates, etc. In Europe, the lowest inflation since November 2023 and 2.4
US
The improvement globally is mostly due to growth for the US: the expectation is that the country’s GDP will grow by 2.5% this year, not 1.6% as the bank forecast in January.
Europe’s growth forecast for this year, however, is maintained at a noticeably lower level of 0.7%. This is the January forecast and is likely to be maintained.
Risks
There are still risks that could affect the forecast, which lie in the development of military conflicts.
But, to be objective, reality is always different from expectations, so all forecasts are just an attempt to predict the economy’s moves.
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