Surprising U.S. economy is powering better global outlook, World Bank says
What revised global growth rate did the World Bank forecast for this year, and how does it compare to the January forecast?
The World Bank's latest Global Economic Prospects report forecasts a global growth rate of 2.1% for this year. This is an upward revision from the 1.7% growth rate forecast issued in January but still well below the 2022 growth rate of 3.1%.
How has the performance of the U.S. economy influenced the World Bank's outlook on the global economy?
The performance of the U.S. economy has had a significant influence on the World Bank's outlook on the global economy. Due to the resilience and dynamism of the U.S. economy, the World Bank has revised its global growth forecast for 2024 to 2.6%, up from its January forecast of 2.4%. The U.S. economy is expected to grow at an annual rate of 2.5%, which is nearly a full percentage point higher than the World Bank's previous forecast in January. This growth is attributed to strong demand and higher inflation readings in the U.S., which have delayed expectations for Federal Reserve rate cuts. The World Bank's deputy chief economist, Ayhan Kose, stated that the U.S. upgrade accounts for about 80% of the added global growth since the January forecast.
What specific economic indicators from the U.S. did the World Bank highlight as evidence of "U.S. dynamism"?
The World Bank highlighted the performance of the United States as a significant factor in the improved global economic outlook. The U.S. economy is expected to grow at an annual rate of 2.5 percent, which is nearly a full percentage point higher than the World Bank predicted in January. Additionally, the U.S. employment figures showed resilience, with employers adding 272,000 jobs in May, surpassing analysts' estimates. This "U.S. dynamism" has helped stabilize the global economy despite high-interest rates and ongoing conflicts.