January 12, 2023
1 min read

World Bank downgrades 2023 global growth forecast to 1.7%

The downgrade reflected “synchronous policy tightening aimed at containing very high inflation”, as well as deteriorating financial conditions, declining confidence and energy supply disruptions…reports Asian Lite News

Global economic growth is projected to slow to 1.7 per cent in 2023, 1.3 percentage points below the forecast made in June last year, marking its third-weakest pace in nearly three decades, the World Bank Group said in its latest Global Economic Prospects report.

Given such adverse shocks as high inflation, rising interest rates, sluggish investment and the Russia-Ukraine war, global growth has slowed “to the extent that the global economy is perilously close to falling into recession”, the report said.

The downgrade reflected “synchronous policy tightening aimed at containing very high inflation”, as well as deteriorating financial conditions, declining confidence and energy supply disruptions, it said.

Noting that the adjusted global growth forecast is overshadowed only by the 2009 and 2020 global recessions, the report said in 2024, the global economy is on track to grow by 2.7 per cent.

More specifically, the report said that growth for advanced economies is projected to slow to 0.5 per cent in 2023, 1.7 percentage points below the June forecast.

US economic growth forecast for this year has been downgraded by 1.9 percentage points to 0.5 per cent, the weakest performance outside of recessions since 1970.

The Eurozone economy is 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 this year, down 2.7 percentage points from the previous forecast.

ALSO READ: Biden ‘surprised’ as govt records found at old office

Previous Story

Chaos across US air travel system

Next Story

US Senator seeks hearing on TikTok related national security concerns

Latest from -Top News

NASA Bars Chinese Nationals

The move marks a significant escalation in Washington’s efforts to safeguard its space technology and leadership at a time of intensifying competition with Beijing…reports Asian Lite News The United States space agency

Nepal Elections on March 5

After the Gen Z protest that left 51 dead, over 1,300 injured and thousands of prisoners escaped, Paudel urged public cooperation for the March 5 elections…reports Asian Lite News Nepal’s President Ramchandra

UN Warns on Afghan Deportations

International aid agencies have also raised alarms, warning that the mass return of Afghan refugees could destabilise the country further and exacerbate poverty and displacement….reports Asian Lite News The UN Refugee Agency

Dad’s Tip-Off Nabs Kirk Suspect

Kirk, a conservative youth leader with a large following, was shot dead on Wednesday when he was speaking at a university in Utah. “We got him”, Utah Governor Spencer Cox said, announcing

NATO Boosts Eastern Defenses

So far, Denmark, France, Britain and Germany have committed to the mission, with more allies expected to join in the coming days…reports Asian Lite News NATO has announced plans to reinforce the
Go toTop

Don't Miss

Ajay Banga Charts IDA’s Path to Global Progress

World Bank Chief underscored the urgency of action, particularly with

World Bank Stays At 6.3% for India’s 2023-24 GDP

The World Bank in its April report had cut India’s