Global growth is slowing 'perilously close' to recession, the World Bank said Tuesday, slashing its 2023 economic forecast on high inflation, rising interest rates and Russia's invasion of Ukraine.
World Bank President David Malpass is concerned a slowdown in global growth will persistWASHINGTON - Global growth is slowing"perilously close" to recession, the World Bank said Tuesday, slashing its 2023 economic forecast on high inflation, rising interest rates and Russia's invasion of Ukraine.
This is among the weakest rates seen in nearly three decades, overshadowed only by the pandemic-induced downturn of 2020 and global financial crisis in 2009. World Bank President David Malpass told reporters Tuesday:"I'm concerned, deeply concerned that the slowdown may persist."In the United States, growth will likely slow to 0.5 percent in 2023, much lower than earlier forecast, while the euro area is to flatline as it battles energy supply disruptions and price hikes related to Russia's invasion.
"Emerging and developing countries are facing a multi-year period of slow growth driven by heavy debt burdens and weak investment," he added. But in the near-term, the World Bank is watching out for"the possibility of financial stress, if interest rates go up higher at the global level," he told AFP.And if financing conditions get tighter, there will likely be more debt crises this year, he warned.Central banks including the US Federal Reserve have been hiking interest rates over the past year to fight inflation, but the drag on economies is"set to deepen" as policies take effect, the World Bank said.
Among the hardest-hit areas is Sub-Saharan Africa, which accounts for some 60 percent of the world's extreme poor.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
World Bank warns global economy at risk of recession, slashes 2023 outlookNo room for defeatism, says David Malpass as urges countries to implement reforms and build stronger economies
Read more »
Business Maverick: World Bank Cuts 2023 Forecasts and Warns of Global RecessionThe World Bank slashed its growth forecasts for most countries and regions, and warned that new adverse shocks could tip the global economy into a recession.
Read more »
Brace for a bumpier 2023: Experts predict a tougher year and global recession | BusinessCrystal balls can be risky. In 2019, everyone was anticipating a 'twenty-plenty', and after the Covid-19 pandemic ravaged the world, many economists, fortune tellers, and probably even sangomas predicted a better 2021. | News24_Business
Read more »
World Bank warns global economy could easily tip into recession in 2023 - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.The World Bank slash edits 2023 growth forecasts on Tuesday to levels teetering on the brink of recession for many countries as the impact of central bank rate hikes intensifies, Russia's war in Ukraine continues,and the world's major economic engines sputter.
Read more »
NERSAN NAIDOO: Investing in 2023: strategies to weather a bumpy rideInvestment community is expecting another tough year
Read more »