World Bank predicts slow global growth for 3rd straight year

Heightened global tensions, arising particularly from Israel’s war with Hamas and the conflict in Ukraine, pose the risk of even weaker growth.
The World Bank building in Washington. (Photo | AP)
The World Bank building in Washington. (Photo | AP)

NEW DELHI: The global economy will slow for a third consecutive year in 2024, predicts the World Bank on Tuesday. It said the world economy will expand just 2.4% this year. This would be down from 2.6% growth in 2023, 3% in 2022, and 6.2% in 2021, which reflected the robust recovery from the pandemic recession of 2020.

Heightened global tensions, arising particularly from Israel’s war with Hamas and the conflict in Ukraine, pose the risk of even weaker growth. World Bank officials express worry that deeply indebted poor countries cannot afford to make necessary investments to fight climate change and poverty. ‘Near-term growth will remain weak, leaving many developing countries ‘ especially the poorest ‘ stuck in a trap: with paralyzing levels of debt and tenuous access to food for nearly one out of every three people,” Indermit Gill, the World Bank’s chief economist, said in a statement.

The World Bank expects US growth to decelerate to 1.6%this year as higher interest rates weaken borrowing and spending. The Federal Reserve has raised US interest rates 11 times since March 2022. Higher rates are also taming global inflation, which the World Bank foresees sinking from 5.3%last year to 3.7% in 2024 and 3.4% in 2025.

Related Stories

No stories found.

X
The New Indian Express
www.newindianexpress.com