However, “the recent tensions in the banking sector will credit terms and this will result in a substantial slowdown in growth in the second half of this year,” says the World Bank.
Thus, for 2023 as a whole, global activity is expected to slow down, with a pronounced slowdown in developed economies, which will grow by just 0.7% this year (two tenths more than previously estimated) and 1.2% next year % (four tenths less than expected in January).
USA will only grow by 1.1% in 2023 and 0.8% in 2024, while the Euro zone it will have a slight growth of 0.4% in 2023 and 1.3% in 2024.
Meanwhile, the emerging economies will grow by 4% (six-tenths more than expected in January), thanks to strong pressure from China, which will grow by 5.6% this year (1.3 points more).
About Latin America and the CaribbeanWorld Bank projections indicate that the region will only grow by 1.5% this year two tenths more than previously estimated, although the group emphasizes that consumer confidence has cleared up so far in 2023 and raw material prices have partially recovered.
One of the most important economies of the region stands out Mexicowhich will grow at 2.5% this year (although it will slow to 1.9% in 2024), and Brazil, which will maintain very modest figures over the two years (1.2% in 2023 and 1.4% in 2024).
However, they will get a contraction, Argentina (of 2%), burdened by the severe drought that has affected their agricultural production, and Chili, which will shrink 0.8%. Both economies will recover in 2024 and show growth of 2.3% and 1.8% respectively.
As inflationary pressures continue, the drag on growth from continued monetary tightening to restore price stability is expected to peak in many major economies in 2023.
Source: El heraldo
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
