'The world might become stuck in the slow lane'—World Bank warns of the consequences of sustaining elevated interest rates
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The World Bank has upgraded its outlook for the global economy, estimating that it will expand 2.6% this year, with the United States accounting for 80% of the growth. However, the bank warns that global growth remains sluggish, with the poorest countries struggling under heavy debts and high interest rates. The World Bank cautions against protectionism and increased trade barriers, which endanger prosperity worldwide. The bank also warns that sustaining elevated interest rates for a longer period can lead to slower growth and urges avoiding lower-for-longer economic growth. Many countries, including China, Latin America, and sub-Saharan Africa, are already experiencing economic strain. The World Bank expects emerging market and developing countries to collectively grow 4% this year. The bank also expresses concerns about faltering trade and the need for dialogue and common ground to solve trade problems instead of erecting barriers.

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https://fortune.com/2024/06/11/interest-rates-world-bank-global-growth-us-economy-ayhan-kose/