THE CABLE
The World Bank says a sharp, long-lasting slowdown is expected to hit developing countries hard this year as the global economy weakens.
The bank said this in its latest ‘global economics prospects’ report, released on Tuesday.
It said the 2023 global growth is expected to slow to 1.7 percent — a downgrade from 3 percent earlier projected in June 2022.
The World Bank warned that shocks including higher-than-expected inflation, sudden spikes in interest rates to contain price increases, or a pandemic resurgence could tip the global economy into a recession.
“Given fragile economic conditions, any new adverse development — such as higher-than-expected inflation, abrupt rises in interest rates to contain it, a resurgence of the COVID-19 pandemic, or escalating geopolitical tensions — could push the global economy into a recession,” the report reads.
“This would mark the first time in more than 80 years that two global recessions have occurred within the same decade.
“The global economy is projected to grow by 1.7 percent in 2023 and 2.7 percent in 2024. The sharp downturn in growth is expected to be widespread, with forecasts in 2023 revised down for 95 percent of advanced economies and nearly 70 percent of emerging market and developing economies.”
