World Bank Offers Bleaker Global Growth Outlook for 2021

Economy

Washington, Jan. 5 (Jiji Press)--The World Bank lowered its global economic growth forecast for 2021 to 4.0 pct from the June projection of 4.2 pct, citing a resurgence of novel coronavirus infection cases.

Led by Japan, the United States and other advanced economies, as well as by China, the global economy is seen picking up from last year’s pandemic-caused recession, the worst since the end of World War II, according to the bank’s latest Global Economic Prospects report, announced on Tuesday.

The World Bank forecast this year’s global growth at the fastest pace since 2010, when the global economy recovered from the financial crisis triggered by the collapse of U.S. investment bank Lehman Brothers in 2008.

Still, the level of global gross domestic product this year is forecast to be 5.3 pct below pre-pandemic projections, according to the report.

“The global recovery, which has been dampened in the near term by a resurgence of COVID-19 cases, is expected to strengthen over the forecast horizon as confidence, consumption and trade gradually improve, supported by ongoing vaccination,” the World Bank said.

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Jiji Press