(Finance) – A “substantial” slowdown in global growth in 2023, to +2.1% from +3.1%, with the tightening of monetary policy to contain inflation, and a new acceleration in 2024 with a +2 .4%. These the World Bank forecasts that in the Annual report on the outlook for the global economy released today underlines that risks to the outlook are to the downside. The Washington institute identifies the global challenges to be faced in avoiding financial tensions and accelerating the green transition. for theeuro area the World Bank estimates a GDP growing by 0.4% this year, 1.3% in 2024 and 2.3% in 2025. For United States growth is expected at 1.1% in 2023 to then slow down to 0.8% next year and rise to 2.3% in 2025.
“The world economy is in a precarious position,” he says Indermit Gill, the chief economist of the World Bank. “The surest path to poverty reduction is through employment. It is important to remember that forecasting growth is not destiny. We have the opportunity to reverse course but it will require working together,” he highlights Ajay Banga, the president of the World Bank.
L’Russian economy – according to World Bank forecasts – it will contract by 0.2% in 2023 and then return to growth in 2024 and 2025, with increases of 1.2% and 0.8% respectively.
There growth in Latin America and the Caribbean should slow down from +3.7% recorded in 2022 to 1.5% in 2023. In the report, the World Bank underlines that the decline in activity in the region is due to the restrictive policy adopted by central banks to contain an average level of inflation still above the set targets. The World Bank also assigns important importance to the “political uncertainty” which in some countries “is damaging the confidence of businesses and consumers”. Between factors contributing to the slowdown in growth there is also the parallel decline in the economic activity of the main trading partners. According to the Bm also the climate change “poses a significant risk given the increasing frequency of extreme weather events” affecting the region. The multilateral body has reduced its growth forecasts for the region also for 2024, with +2% instead of the +2.4% estimated in January.