World Bank raises US GDP growth estimate for 2024 to 2.5%

The World Bank announced on Tuesday in its latest Global Economic Prospects report that it expects the gross domestic product (GDP) in the United States to grow by 2.5% in 2024.

This marks a significant increase from the January growth projection of 1.6%, highlighting the continued robust expansion of the US economy.

Global economic outlook improved

The global economy is anticipated to rise by 2.6% this year, an upgrade from the 2.4% forecast in January.

The World Bank explained in its report,

Eurozone and China projections

For the Eurozone, the GDP growth forecast remains unchanged at 0.7% for 2024. Meanwhile, China's economy is projected to expand by 4.8% in 2024, which is 0.3 percentage points higher than the previous forecast.

This upward revision reflects improved economic activity and stronger-than-expected recovery dynamics within China.

Looking further ahead, the World Bank forecasts the global economy to grow by 2.7% in 2025. During the same period, the US GDP is expected to rise by 1.8%, the Eurozone by 1.4%, and China by 4.1%.

Lingering inflation pressures

The report also notes that while global growth prospects have improved, lingering inflation pressures in key economies are moderating the expected declines in global interest rates.

This suggests that central banks might maintain tighter monetary policies for longer than previously anticipated to combat persistent inflationary trends.

The World Bank's latest revisions reflect a cautiously optimistic view of the global economic landscape, with significant contributions from the solid expansion of the US economy.

As the world navigates lingering inflation pressures and the implications for interest rates, these projections provide valuable insights for policymakers and investors alike.