US economic growth is weakened – and its gonna stay that way for a minute.

The World Bank just slashed its forecast for U.S. economic growth for 2024.

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.

The outlook is concerning. More than two-thirds of U.S. GDP is made up of personal consumption. If consumers don’t spend, it doesn’t bode well for the economy.

“After growing 1.1% in 2023, the U.S. economy is likely to remain weak in 2024,” the World Bank predicts.