Economics

Global Economic Outlook Dims on Virus’s Surge Ahead of Vaccines

  • World Bank sees 4% expansion this year after 4.3% contraction
  • Report cites ‘exceptional’ uncertainty about near-term outlook
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This year’s global economic rebound from the deepest recession since World War II will be slightly slower than previously expected amid a resurgence in virus cases across advanced economies, the World Bank said.

Gross domestic product will expand 4% in 2021, less than the 4.2% forecast in June, followed by 3.8% growth in 2022, the Washington-based lender said Tuesday in its semi-annual Global Economic Prospects report. The U.S. and euro area forecastsBloomberg Terminal were lowered while the China growth projection rose by 1 percentage point to 7.9%.