[Economics] The World Bank raises global growth to 2% due to the improvement in China

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They plan to organize raising economic forecasts, taking into account the performance of the Asian country

ECONOMY. The end of the lockdowns due to the pandemic encourages activity. EFE
The president of the World Bank, David Malpass, announced this Monday that the World Bank is going to raise the world growth forecasts for this year three tenths, to 2%, thanks to the better prospects for China after the end of the blockades due to the pandemic. .

 

"It is an upward revision and it is partly due to the better prospects in China after the blockade was lifted," said the American in a talk with the media prior to the opening of the spring meetings of the World Bank (WB) and the International Monetary Fund (IMF). After the end of the zero covid policy, China is expected to grow 5.1% this year, eight tenths more than the figure estimated last January. The rise in the global growth forecast is also This is because "advanced economies are doing a little better than they seemed in January" and, for example, in the United States and Europe "consumption has held up better than expected," Malpass explained. However, the WB president specified, "slower activity is expected in the second half of 2023." In the coming months there could be a rise in the price of oil, he said, and "the challenge of the change in the perception of banking health" must also be closely watched, after the bankruptcies of several entities. Malpass will inaugurate today, together with the director of the IMF, Kristalina Georgieva, the spring meetings in which ministers and directors of financial institutions will participate to discuss the state of the world economy and the main future challenges. These will be the last meetings as president of the WB for Malpass, who a few weeks ago announced his intention to leave the post on June 30 to pursue new professional challenges. In them, Malpass said, one of the main issues to be dealt with is the debt and the need for its restructuring and the change towards "a system to make it more transparent."

 

"The ultimate goal here is that if the poorest countries get into debt on trade terms, the benefits are known and measured and go to the people of the country, and that hasn't been happening," Malpass said. In his opinion, the debt overhang "is paralyzing many of the countries and investment in those countries." "If we think about what is best for advanced economies and also for China is to have a restructuring that allows new investment to come into countries and therefore creates new markets."

 

Link: https://www.expreso.ec/actualidad/economia/banco-mundial-sube-crecimiento-mundial-2-mejora-china-156855.html