But if the infection is brought under control quickly, with a rapid vaccination process, growth could actually reach 5 percent, the company said. Overall, there are many uncertainties about the forecasts, the World Bank agrees. The contraction in 2020 appears to be lower than previously thought.
The United States, the world’s largest economy, is expected to grow 3.5 percent this year after a 3.6 percent decline last year. The World Bank predicts that the euro will be 3.6 percent higher, after 7.4 percent in 2020.
Japan, the world’s third-largest economy, is expected to grow 2.5 percent this year. That’s down from 5.3 percent last year.
According to the World Bank, China’s second-largest economy is expected to grow 7.9 percent this year. China is projected to grow by 2 percent by 2020, making it the only major economy in the world to be able to show growth last year.
According to World Bank President David Malpas, governments around the world face major challenges in areas such as health care, credit and budgets. He calls for reforms to increase investment and stimulate the economy further.