The World Bank has raised its global growth forecast

He the world bank on Tuesday it raised its forecast for global growth to 2.1 percent in 2023, four tenths higher than previous estimates, while cutting its growth outlook for 2024 by three tenths to 2.4 percent.

However, the agency warned of the vulnerability of developing economies due to the effects of interest rate increases in the fight against inflation.

In its new Global Outlook report, the development bank made clear that the resilience shown by most countries during 2022, when the global economy grew by 3.1% despite the energy crisis and the war in Ukraine, will fade. .

“I’m afraid this is another gloomy report as we expect last year’s sharp and synchronized slowdown to continue this year,” the bank’s chief economist, the bank’s chief economist, told the media. Indermit Gill, who emphasized that the poor growth will be synchronized because two out of three economies will have a lower growth rate this year than last year.

The agency predicts that by 2024 the global economy will accelerate again and grow by 2.4%, three tenths less than previously expected.

In addition, he expects the effects of rate hikes on growth to peak this year, although banking volatility will continue to weigh on credit.

Eye Latin America and the CaribbeanWorld Bank projections show the region will grow by barely 1.5% this year, two tenths higher than previous estimates, although the group points out that so far in 2023, consumer confidence has cleared and raw material prices have partially recovered.

Among the main economies in the region, Mexico stands out, which will grow by 2.5% this year (although it will slow down to 1.9% in 2024) and Brazil, which will maintain very modest figures for both years (1.2% in 2023 and 1.4% in 2024).

However, it will suffer a decrease, Argentina (of 2%), burdened by a severe drought that has affected its agricultural production, and Chili, which will decrease by 0.8%. Both economies will recover in 2024 and record growth of 2.3% and 1.8%, respectively.

The report places special emphasis on the extremely vulnerable situation of low-income countries, where fiscal conditions have deteriorated over the past decade.

Among the main problems of these economies is the increase in public debt, the increasing risk of non-payment of obligations and the devastating effects of the climate crisis.

In addition, the organization analyzes the consequences of the restrictive monetary policy of the United States in emerging economies and concludes that it is associated with negative effects and may even contribute to the emergence of financial crises in some countries.