Economic News (3rd Party)

WASHINGTON (Reuters) – The World Bank forecast real GDP growth of 2.1% in 2023 in its latest World Economic Outlook released on Wednesday, up from 1.0% in its previous forecast released in January. Revised upward from 7%. It judged that the economies of major countries such as the United States were stronger than expected.

However, the growth rate is lower than 3.1% in 2022.

However, it cut its growth forecast for 2024 to 2.4% from the previous forecast of 2.7% and said higher interest rates by major central banks would weigh more heavily than had been expected. He pointed out that the tightening of monetary policy has led to a decline in business fixed investment and housing investment in particular.

“The continued impact of monetary tightening and more constrained credit conditions will slow economic growth significantly this year,” the World Bank said. The growth rate is expected to be lower than the previous forecast,” he said.

The growth rate in 2025 is expected to recover to 3.0%.

The U.S. economy is expected to grow 1.1% in 2023, up from its previous forecast of 0.5%. The outlook for 2024 is 0.8%, halved from the previous forecast of 1.6%.

China’s growth rate forecast for 2023 is 5.6%, an upward revision from the previous forecast of 4.3%. The 2024 outlook was lowered to 4.6% from 5.0%.

The eurozone’s growth forecast for 2023 was raised to 0.4% from the previous forecast of flat growth. It cut its growth forecast for 2024 slightly.