In the latest Global Economic Prospects, World Bank raised 2023 global growth forecast to 2.1%, from January’s projection of 1.7%. Nevertheless, growth forecast for 2024 was downgraded from 2.7% to 2.4%. Growth is expected to accelerate further to 3.0% in 2025.
“Growth over the rest of 2023 is set to slow substantially as it is weighed down by the lagged and ongoing effects of monetary tightening, and more restrictive credit conditions,” the report said.
“These factors are envisaged to continue to affect activity heading into next year, leaving global growth below previous projections.”