The World Bank raises global and Chinese economic growth expectations for this year. China | Economy | Economy
New York, June 6th (Xinhua) - The World Bank released its latest Global Economic Outlook report on June 6th, predicting that the global economy will grow by 2.1% in 2023, an increase of 0.4 percentage points from January's forecast, but still lower than the 3.1% in 2022; The Chinese economy is expected to grow by 5.6% in 2023, an increase of 1.3 percentage points from the January forecast.
The report said that with the Russia-Ukraine conflict continuing and monetary policy tightening to curb high inflation, the global economic growth this year will be significantly lower than last year. The global economy is expected to grow by 2.4% in 2024, a 0.3 percentage point decrease from the January forecast, and the growth rates of major economies have also been widely lowered.
Among the major developed economies, the US economy is expected to grow by 1.1% this year and slow down to 0.8% next year; The economic growth rate of the Eurozone has slowed down to 0.4% this year and will increase by 1.3% next year; Japan's economy has grown by 0.8% this year, with a growth rate of 0.7% next year.
The World Bank predicts that due to China's economic recovery and improved growth prospects for several large economies, economic growth in East Asia and the Pacific, Europe, and Central Asia will accelerate this year, while economic growth in other regions will slow down. Next year, the economic growth rate in East Asia, the Pacific, and South Asia will decline, while the growth rate in other regions will increase due to easing internal headwinds and increasing external demand.
The report points out that the global economy is still in an unstable state under the influence of the COVID-19, the Russia-Ukraine conflict, the substantial tightening of monetary policy and other factors. The rapid rise in US interest rates poses significant challenges to emerging markets and developed economies, increasing the likelihood of a financial crisis.
World Bank Senior Vice President and Chief Economist Indimet Gil said that if the current banking crisis in developed economies spreads into widespread financial turmoil and affects emerging economies, the worst-case scenario would be that the global economy will experience a deep recession next year.