World Bank: Economic Forecast Almost Halved
The World Bank expects a major global economic slowdown this year, which will also last for a long time. It cut its growth forecast by almost half to 1.7 percent.
The economic prospects of the global economy are fading. Due to high inflation and high interest rates, the World Bank expects a large and prolonged global economic recession this year.
World Bank expects growth of just 1.7%
It lowered its economic growth forecast to 1.7%, nearly half the 3.0% projected in the summer of 2022. Outside of the crisis years of 2009 and 2020, that would be the lowest figure in nearly three decades.
Experts spoke of a fragile situation. Any unexpected shock could lead to a global recession. The World Bank has cited higher-than-expected inflation, a sudden rise in interest rates, renewed geopolitical tensions or the return of the Corona pandemic as possible examples of such developments.
Zero growth is Possible in the Eurozone
The World Bank expects a low 0.5 percent growth for the United States and zero growth for the eurozone due to the energy crisis.
According to forecasts, China will grow by 4.3 percent. That’s 0.9 percentage points lower than expected in June. The prospect is particularly “devastating” for many of the world’s poorest countries. The fight against poverty has already reached a dead end.
Slight recovery possibly in 2024
According to forecasts, there will be an economic recovery in 2024. However, it will be relatively modest at 2.7%.