World Bank: Global growth to reach 5.6% in 2021, strongest post-recession pace in 80 years

In its latest Global Economic Prospects report, the World Bank said it forecasts the global economic growth to reach 5.6% in 2021, the strongest post-recession pace in 80 years, following the 3% contraction recorded in 2020, per Reuters.

Additional takeaways

"World Bank forecasts global growth at 4.3% in 2022, 3.1% in 2023."

"Higher global growth forecast, up from 4.1% in January, reflects stronger US fiscal support, highly unequal vaccine access."

"World Bank forecasts US 2021 growth at 6.8%, vs 5.5% in January, after 2020 contraction of 3.5%."

"World Bank forecasts eurozone 2021 growth at 4.2% vs January forecast of 3.6%, after 6.6% contraction in 2020."

"World Bank forecasts China's 2021 growth at 8.5% vs January forecast of 7.9%, after 2.3% contraction in 2020."

"World bank forecasts 2021 growth for emerging markets ex-China at 4.4% vs January forecast of 3.4%, after 4.3% contraction in 2020."

"World bank forecasts global inflation to rise about 1 percentage point in 2021, may not warrant a policy response."

"Long-term expectations point to continued low and stable inflation."

"Market concerns about persistently higher inflation in advanced economies could cause emerging market borrowing costs to rise."

Market reaction

This report doesn't seem to be having a significant impact on market sentiment. As of writing, the S&P 500 Index was unchanged on the day at 4,226.