The World Bank Warns of the Lowest Growth Period in Three Decades

The global economy is facing the possibility of experiencing the lowest growth period in the last 30 years, extending over five years, according to the World Bank in its macroeconomic projections report, which assures that the decade in which we are in could be called “the wasted opportunities.”

Although the World Bank affirms that the global economy is better than a year ago. Since the risk of suffering a global recession has decreased, the organization says that the current geopolitical tensions could generate new dangers in the short term for the entire economy at a worldwide level.

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In the same way, it ensures that the medium-term prospects for developing economies have stagnated amid the slowdown in the growth of the world powers, along with trade, restrictive financial conditions, and high-interest rates.

By 2024, it is projected that the growth of the world economy could be only half the average compared to the records of the decade before the pandemic, as borrowing costs remain high. On the other hand, inflation has managed to hold up, prompting some economies to raise interest rates.

Forecasts for 2024

The World Bank’s most recent projections indicate a slowdown in global growth to 2.4% this year, down from 2.6% in 2023. This would be the third consecutive annual slowdown. Moreover, for 2025, the forecast is 2.7%.

About advanced economies, an expansion of 1.2% is anticipated in the current year and 1.6% in the next, maintaining the projection for 2024 but observing a deterioration of six-tenths in the estimate for 2025.