UNITED NATIONS (AP) — The United Nations reported improved prospects for the world economy since its January forecast on Thursday, pointing to a better outlook in the United States and several large emerging economies including Brazil, India and Russia.

According to its mid-2024 report, the world economy is now projected to grow by 2.7% this year – up from the 2.4% forecast in its January report – and by 2.8% in 2025. A 2.7% growth rate would equal growth in 2023, but still be lower than the 3% growth rate before the COVID-19 pandemic began in 2020.

“Our prognosis is one of guarded optimism, but with important caveats,” Shantanu Mukherjee, director of the U.N.’s Economic Analysis and Policy Division, told a news conference launching the report.

The report pointed to interest rates that are higher for longer periods, debt repayment challenges, continuing geopolitical tensions and climate risks especially for the world’s poorest countries and small island nations.