Global Economy "Perilously Close to Falling into Recession", World Bank says
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Posted: 11th January 2023
Katina Hristova
Last Updated 22nd January 2024
According to the latest forecast from the World Bank, the global economy is "perilously close to falling into recession".
The Bank expects that the world economy will grow by only 1.7% this year - a 1.3% decrease from what it predicted in June.
The most recent report contributes this to the expected factors - the war in Ukraine and the COVID-19 pandemic.
The key challenge for policy makers to overcome, according to the report, is the impact of higher interest rates.
David Malpass, the President of the World Bank, said the downturn would be "broad-based" and growth in earnings in nearly every part of the world was expected to "be slower than it was during the decade before COVID-19".
The growth figure of 1.7% would be the lowest figure since 1991, with the exception of the 2009 and 2020 recessions.
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