The World Bank has alerted that at 1.7 slow global economic growth prediction for 2023, “the global economy is perilously close to falling into recession.”
The global financial institution disclosed this through in its latest Global Economic Prospects where it predicted a 1.7 percent slow for 2023, which is 1.3 percent points below the forecast made in June 2022.
The bank fingered adverse shocks as high inflation, rising interest rates, sluggish investment and the Ukraine crisis for the slow growth “to the extent that the global economy is perilously close to falling into recession.’’
The downgrade reflected synchronous policy tightening aimed at containing very high inflation, as well as deteriorating financial conditions, declining confidence and energy supply disruptions, the release noted.
Noting that the adjusted global growth forecast is overshadowed only by the 2009 and 2020 global recessions.
More specifically, the report said that growth for advanced economies was projected to slow to 0.5 per cent in 2023, 1.7 percentage points below the June forecast.
It added that the U.S. economic growth forecast for this year has been downgraded by 1.9 percentage points to 0.5 per cent, described as the weakest performance outside of recessions since 1970.
The Eurozone economy was projected to grow at 0 per cent, down 1.9 percentage points from the previous forecast.
Meanwhile, the report said that growth for emerging and developing economies is projected to slow to 3.4 per cent in 2023, 0.8 percentage points below the June forecast.
It added that global trade volume will grow 1.6 per cent in 2023, down 2.7 percentage points from the previous forecast.