World Bank Cuts Global Growth forecast, Warns of Second Recession in Three Years
(12 January 2023 – United States) The World Bank slashed its global growth forecasts from projections it made in mid-2022 on the back of what it sees as broadly deteriorating economic conditions.
In its Global Economic Prospects report, the World Bank has cut global growth to 1.7 percent for 2023. This is down from the 3 percent expected just six months ago. For 2024, the organisation sees growth at 2.7 percent.
According to the World Bank It would mark the third weakest pace of growth in nearly three decades, overshadowed only by the global recessions caused by the pandemic and the global financial crisis.
The drivers behind this dramatic slowdown are stubborn inflation, high interest rates, reduced investment and the war in Ukraine, The World Bank said.
"Emerging and developing countries are facing a multi-year period of slow growth driven by heavy debt burdens and weak investment as global capital is absorbed by advanced economies faced with extremely high government debt levels and rising interest rates," warned World Bank Group President, David Malpass.
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