Economy worldwide remains stable after three years of volatility.
In a recent announcement from the World Bank, they reported that the world's economy is finally showing signs of steadiness after three years of turmoil. This improvement comes amidst ongoing geopolitical conflicts and high-interest rates. For the current year, the bank predicts a 2.6% growth rate, the same as the previous year. They also increased their 2024 forecast by 0.2 percentage points. The growth rates for 2025 and 2026 are estimated at 2.7%.
The economic landscape appears to be heading towards a "soft landing," which implies lower inflation without a recession and minimal unemployment. However, the report cautions that despite being over four years since the start of the pandemic and its subsequent fallouts, the world, particularly developing countries, are yet to find a surefire route towards prosperity. By the end of this year, one out of every four developing countries will be worse off than before the Covid-19 crisis, as per the World Bank's warning.
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According to the World Bank's latest forecast, the global economy is expected to grow by 2.6% this year, maintaining the same pace as in 2022. Furthermore, the World Bank increased its 2024 growth forecast by 0.2 percentage points, suggesting a steadier global economic recovery.
