The World Bank has upgraded its global economic outlook, saying the “great” U.S. economy is leading the way.
The latest outlook predicts the global economy will grow by 2.6 percent this year, up from the 2.4 percent growth rate previously expected.
In preface In the World Bank’s latest economic outlook, Indermit Gill, the group’s senior vice president and chief economist, said the global economy appears to be approaching a “soft landing” in 2024, meaning a global recession has been avoided despite “the sharpest increase in global interest rates since the 1980s.”
Gill explained that one of the driving forces is the US economy.
“The US economy in particular has shown impressive resilience,” Gill wrote, “with growth remaining robust despite the most restrictive monetary policy in four decades.”
The U.S. economy is one reason the World Bank expects the global economy to enjoy “some upside room” over the next two years, he wrote.
Ayhan Kose, the bank’s deputy chief economist, told The Associated Press that U.S. economic growth was “exceptional.”
Ahead of the 2024 presidential election, voters repeatedly say the economy is their biggest concern, even though many indicators show the U.S. economy is doing surprisingly well.
The latest jobs report provided a pleasant surprise, showing payrolls increased by nearly 300,000 in May, but the positive outlook is not giving the Biden administration a leg up as it struggles to convince voters of the economy’s success.
Gill said policymakers should be happy that inflation is at a three-year low and a global recession has been avoided in the wake of the COVID-19 pandemic, but warned that growth is still too slow to make progress.
“Without stronger international cooperation and a concerted push for policies that advance shared prosperity, the world may become stuck in the slow lane,” he said.
The World Bank is made up of 198 member countries and aims to reduce poverty and living standards in developing countries, according to the Associated Press.
