01/22/2025

World Bank Says the Global Economy is Growing Steadily

However, it's not growing fast enough to help ease poverty

The global economy is growing steadily in the face of war, protectionist trade policies and high interest rates. It just isn't growing fast enough to bring relief to the world's poorest, the World Bank said Thursday in its latest assessment of the global economy.

The bank expects the world economy to expand 2.7 percent in 2025 and again in 2026. It's a remarkably consistent performance – matching 2023 and 2024 – but also a lackluster one. Growth is running 0.4 percentage points below the 2010-2019 average. The slump reflects lingering damage from the "adverse shocks of recent years," including COVID-19 and Russia's war on Ukraine.

The bank's latest Global Economics Prospects report, which comes out in January and June, did offer some good news. Global inflation, which was running over 8 percent two years ago, is expected to slow to an average of 2.7 percent in 2025 and 2026, close to many central bank targets.

Please select this link to read the complete article from The Associated Press.