World Bank forecast: Stock markets face challenges due to weak economic growth

World Bank forecast: Stock markets face challenges due to weak economic growth

According to a report by www.deraktionaer.de,

The World Bank has published the global growth forecasts in its current report and warns of a further slowdown in the global economy. The forecast for global economic growth in 2023 was raised to 2.1 percent, still a significant slowdown compared to last year. In particular, high interest rates and the Russian war of aggression in Ukraine have caused the World Bank to revise its forecast.

The World Bank warns of weak economic development and emphasizes that the global economy is still struggling, despite a slight increase in the forecast for 2023. The forecast for 2024 envisages a slight recovery with growth of 2.4 percent. The interest rate increases in the USA and the impact on emerging and developing countries represent a further challenge and could further weigh on global economic growth.

In addition, the improved growth forecasts for Russia are noted, which can be attributed to continued energy exports. The World Bank expects a milder contraction in the Russian economy in the coming years, although political uncertainty and sanctions remain a burden.

The World Bank also warns about the impact of ongoing inflation on monetary policy, stressing that there are major risks to both the current forecast and future economic growth.

Overall, the World Bank report shows that the global growth outlook remains dim and the global economy is in a delicate position. The current development of the stock markets is unlikely to be influenced much by this report, as the forecast is based primarily on existing information.

With material from dpa-AFX