Global economy in 'precarious position,' World Bank warns
- Economy
- DPA
- Published Date: 10:47 | 07 June 2023
- Modified Date: 10:53 | 07 June 2023
High interest rates and the Russian war in Ukraine continue to significantly slow global economic growth, according to a new report from the World Bank.
Following growth of 3.1% last year, the global economy will slow to 2.1% in 2023, the World Bank said on Tuesday in its latest forecast.
The figure for 2023 was however 0.4 percentage points higher than an estimate released by the bank in January.
It is still one of the weakest growth rates in the past five decades, said the World Bank's chief economist Indermit Gill.
"The world economy is in a precarious position," Gill said.
In 2024, the global economy should recover slightly and grow by 2.4%, according to the report. However, growth could also be lower than expected.
High global inflation is expected to decline gradually as demand eases and commodity prices weaken, the report said.
It could also lead to further tightening of monetary policy. Widespread bank stress could lead to much weaker growth outcomes.
"It's important to keep in mind that growth forecasts are not destiny," World Bank President Ajay Banga said. "We have a chance to turn the tide, but it will take us all working together."
- China says ban on Huawei will be 'brazen' violation of market principles
- U.S. trade deficit soars 23% to $74.6B in April
- Türkiye achieves the highest domestic oil production in 32 years
- CNN chief Chris Licht has stepped down: Warner Brothers
- Technology companies laid off 200,000 people in first 5 months of 2023: The US tech giant is the leader