World Bank (WB) issued updated global economic prospects, which revealed it now predicts that global growth will hold steady at 2.6% YoY in 2024. The organization's January forecast had implied a 2.4% YoY growth.
The WB said that the upgrade mainly reflected the continued solid expansion of the U.S. economy. The U.S. growth is now expected at 2.5%, sharply up from 1.6% in the January forecast. In addition, the Bank improved its 2024 growth forecasts for China (to 4.8% from 4.5% prior) and India (to 6.6% from 6.4% prior).
The global growth is seen to edge up to 2.7% in 2025-26 alongside modest expansions of trade and investment. The WB, however, noted that if interest rates stay higher for longer, then global growth could be 2.4% next year.
Also, the Bank lowered its 2024 global inflation forecast to 3.5% but suggested that central banks are likely to remain cautious in easing policy amid continued inflationary pressures. Global inflation is seen to continue slowing, easing to 2.9% in 2025
and 2.8% in 2026.