(VOVWORLD) -The World Bank (WB) raised its forecast for global growth this year based on strong expansion in the United States, while warning of weak growth due to various continuing factors.
 World Bank headquarters in Washington DC (Photo: AFP/VNA) |
Updating its January projections, the WB nudged the global growth rate up by 0.2 percentage points to 2.6% from 2.4% in January.
The World Bank sees global growth of 2.7% in both 2025 and 2026, a level below the 3.1% rate prior to the COVID‑19 pandemic.
Indermit Gill, senior vice president and chief economist at the World Bank, said global economic growth is still lower than before 2020. His forecast gives a less optimistic assessment for the world’s poorest economies due to difficulties in public debt, limited trade, and budget spending on resolving climate disasters.
The World Bank forecasts that developing economies and emerging markets will grow 4% this year, slightly higher than the January forecast but still lower than before the COVID‑19 pandemic.
The WB estimates that the potential growth rate of the US economy could ramp up to 2.5% per annum by the end of the decade. China, the world'’s second largest economy, is predicted to grow 4.8%, up 0.3 percentage points compared to the forecast in January. But the WB says that China's economy will still slow down this year due to a decline in the real estate sector.