EVERYTHING IS GOING SWIMMINGLY: World Bank Just Halved Its US Growth Forecast For 2024, Saying The Economy ‘Is Likely To Remain Weak.’

Real gross domestic product (GDP) in the country is now projected to grow by 0.8% in 2024, according to the international lending institution’s latest Global Economic Prospects report. Previously, its forecast was 1.6%.

“In the United States, growth is expected to weaken significantly through 2023 and early 2024, mainly as a result of the lagged effects of the sharp rise in policy rates over the past year and a half aimed at bringing down the highest inflation rates since the early 1980s,” the report stated.

The World Bank noted that while consumption has been resilient in America, it is “expected to slow down substantially.” In particular, higher borrowing costs and tighter financial conditions could impact household spending. At the same time, Americans will run out of savings that they accumulated during the pandemic.

Absent more inflationary stimulus from Washington, I figure we might be lucky to get 0.8%.