The World Bank raises growth forecast for world economy

It is the strongest upturn after a crisis in 80 years, writes the World Bank in its new prognosis.

The World Bank is raising its global growth forecast this year to 5.6 percent from its previous forecast of 4.1 percent announced in January.

In comparison, the Organization for Economic Co-operation and Development (OECD) predicts growth of 5.8 percent in the global economy in 2021.

In its new prognosis, the World Bank calls it the strongest upturn after a crisis in 80 yeras.

Major economies are the primary drivers of growth, according to the report, as many developing countries are still struggling with the effects of the Covid-19 pandemic.

"While there are welcome signs of global recovery, the pandemic continues to inflict poverty and inequality on people in developing countries around the world," says World Bank President David Malpass in a comment accompanying the prognosis, while adding:

"Globally coordinated efforts are essential to accelerate vaccine distribution and debt relief, particularly for low-income countries. As the health crisis eases, policymakers will need to address the pandemic’s lasting effects and take steps to spur green, resilient, and inclusive growth while safeguarding macroeconomic stability."

US growth is expected to reach 6.8 percent this year against previous estimate of 3.5 percent. The euro zone's forecast is expected at around 4.2 percent, up from 3.7 percent. Meanwhile, the China's economy will grow by 8.5 percent, up from previous estimate of 7.9 percent.

In 2022, global growth will come out at 4.3 percent, an increase of 0.5 percentage points from the prognosis in January.

English Edit: Christoffer Østergaard

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