FX.co ★ World Bank lowers EU GDP growth forecast

According to the World Bank's estimates, the eurozone is unlikely to show an impressive economic upturn in 2024. The largest financial institution has lowered its growth forecast to 0.7%. According to data from the Global Economic Prospects report, the EU GDP growth has been revised downward to 0.7% in 2024, 0.6% lower than the previous estimate announced in June 2023. According to analysts, the following 2025 year does not offer a rosy picture with European economic growth not exceeding 1.6% (a 0.7 percentage point reduction from the current forecast). In 2023, the World Bank assessed the EU economy’s growth at only 0.4%. According to fresh reports from the international organization, the global GDP will increase by 2.4% in 2024. Meanwhile, this indicator remains unchanged compared to the previous estimate published in June 2023. However, the World Bank expects the pace of global economic growth to be at 2.7% in 2025, 0.3% lower than the current level. "The global economy is set to rack up a sorry record by the end of 2024 – the slowest half-decade of GDP growth in 30 years," the report reads. Earlier, the World Bank improved its forecast for Russia's GDP growth in 2023, increasing it to 2.6% from the previous 1.6%. Potential changes in the indicator are attributed to significant budgetary support. At the same time, the slowing down of further GDP growth in Russia is explained by a lack of workforce and overall capacity constraints.