World Bank, more stable growth in 2024 but at lower levels than pre-pandemic levels

World Bank more stable growth in 2024 but at lower

(Finance) – According to the World Bank during 2024 the global economy will return to stabilize after 4 years but at weak levels if we look at the historical series. In his latest report “Global Economic Prospects“, growth was estimated at 2.6% this year, and then strengthened marginally to 2.7% in 2025 and 2026. These are lower values ​​than the 3.1% that was recorded on average before the pandemic of Covid. The World Bank specifically expects that the developing economies they are expected to grow by an average of 4% over the period 2024-2025, a slight decline compared to 2023. Growth in low-income countries it should instead accelerate to 5% this year from 3.8% in 2023.

This forecast implies that between 2024 and 2026 the countries which together correspond to 80% of the population global continue to grow less than they did before Covid. “It seems that the global economy is stabilizing – he explained Indermit Gill, chief economist of the World Bank –. Yet growth is at lower levels than before 2020 and the outlook for poorer economies is even brighter alarming. They face punitive levels of debt service costs, trade constraints and costly climate events.”

As regards theinflationthe World Bank predicts that it should moderate to 3.5% this year and 2.9% next year. However, this moderation dynamic is slower than expected six months ago. It turns out that many central banks should maintain a cautious attitude in easing monetary line conditions and it is likely that i global interest rates remain high, at least compared to recent historical averages: around 4% over the period 2025-2026, i.e. double the average recorded between 2000 and 2019.