Timeline for global economic recovery is pushed back again

In its semi-annual update of the global economic outlook, the World Bank (WB) stated that the recovery from the crisis has been delayed. The estimates of slowing global growth are getting milder, but the prospects for its end are still dim and are shifting to an increasingly distant future. The WB report describes this as the combined result of the COVID-19 pandemic and global instability caused by the military conflict in Ukraine, while the situation is aggravated by monetary tightening by major central banks.

The global economic growth forecast for 2023 has been raised to 2.1% from the 1.7% expected in January, but also lowered to 2.4% (from 2.7%) for 2024.

The United States’ GDP growth forecast for 2023 has been increased to 1.1% (from 0.5% in the January forecast), and for 2024 it has been lowered to 0.8% from 1.6%.

According to the WB, the Eurozone’s GDP is now expected to grow by 0.4% in 2023 (the previous forecast was stagnation) and by 1.3% in 2024 (1%).

China’s economic forecast for this year has been improved to 5.6% from 4.3%; the forecast for next year has been lowered to 4.6% from 5%.

The WB’s forecast for Russia has not changed after the revision in April, that is a decrease in GDP by 0.2% in 2023 and growth by 1.2% in 2024.