The World Bank has improved its forecast for global economic growth this year

The World Bank (WB) raised its forecast for global economic growth for the current year: real world GDP will grow by 2.1%, which is higher than the January forecast of 1.7%. At the end of 2022, the growth was 3.1%.

“Following a 3.1% growth last year, the global economy is expected to slow significantly in 2023 to 2.1% amid continued monetary tightening to curb high inflation,” the June report WB.

At the same time, the forecast for 2024, on the contrary, is worsened. The World Bank expects global GDP growth next year by 2.4% instead of the announced 2.7% in January. This is due to the ongoing and delayed effects of monetary tightening. Growth rates will recover to 3% only in 2025.

Earlier in April, World Bank President David Malpas declared about the increasing risks of a global recession in the global economy. Then WB is essential improved forecast for Russia’s GDP: in 2023, the Russian economy will contract by 0.2% instead of 3.3% announced in January, analysts say.

In the same month, International Monetary Fund (IMF) Managing Director Kristalina Georgieva reported that in 2023, global GDP will increase by less than 3%, in line with the IMF’s January forecast of 2.9%, but below the five-year average of 3.8% over the past 20 years. The growth of the global economy, the IMF believes, will be constrained by high interest rates, as well as growing geopolitical tensions and the conflict in Ukraine.

Later, Georgieva named three main problems of the world economy, wrote “Vedomosti”. They, according to her, are the fragmentation of economic growth forecasts for developing countries, the need to postpone major structural changes due to constant crises, and the fragmentation of global trade.