World Bank Raises Forecast for Global Economic Growth in 2023 with Significant Increase for China, Emphasises Dangers of A High-Interest Rate Environment, But Lowers Forecast for 2024

Published: Jun 09, 2023 16:20 (GMT+8)
Source: SMM
On Tuesday night CST, the World Bank released the latest semi-annual Global Economic Prospects. While raising the global economic forecast for 2023, it emphasised the harm and risks to developing economies caused by the Fed's interest rate hike and the European and US banking crisis.

On Tuesday night CST, the World Bank released the latest semi-annual Global Economic Prospects. While raising the global economic forecast for 2023, it emphasised the harm and risks to developing economies caused by the Fed's interest rate hike and the European and US banking crisis.

Overall, the World Bank raised its global growth forecast for 2023 to 2.1% from 1.7% in January.

The economic growth rate of developed economies is revised up by 0.2% to 0.7%. The forecast for economic growth rate of the United States is raised by 0.6% to 1.1%, while the economic forecast of the eurozone is also raised from 0% to 0.4%.

The latest report also raised forecast for the Chinese economy significantly.

According to CCTV, the June Global Economic Outlook report raised China's 2023 economic growth forecast to 5.6%, compared with 4.3% in the January report and the forecast of 5.1% in Semi-annual East Asia and Pacific Regional Economic Report in April.

The latest report revised up the GDP growth forecast for emerging markets and developing economies by 0.6% to 4.0%.

In addition to China, the World Bank also revised up Russia's economic growth rate in 2023 by 3.1% to -0.2%.

Growth forecasts for countries such as South Africa, India, and Argentina have been revised down.

Regarding the outlook for economic growth, World Bank President Ajay Banga also emphasised: "We must remember that growth forecasts are predictions, not inevitable outcomes.

We have a chance to turn things around, but it will take everyone working together. "

The World Bank's latest report also revised down the global economic growth forecast for 2024 by 0.3% to 2.4%, mainly because the growth rate of developed economies was revised down by 0.4%.

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