The World Bank did not rule out a recession in the global economy in 2023

WASHINGTON, January 10 – RIA Novosti. The World Bank expects global economic growth to slow to 1.7% in 2023 and points out that any new negative event could trigger a recession, the bank said.
In a press release accompanying the publication of the regular report, the bank said that it had lowered its economic growth forecasts for 2023 for 95% of developed and 70% of developing countries.
“The global economy is projected to grow by 1.7% in 2023 and by 2.7% in 2024. The sharp slowdown in growth is expected to be widespread: forecasts for 2023 are revised down for 95% of advanced economies and almost 70% of emerging and transitional economies,” the bank said.
He considers increased inflation, rising interest rates, declining investment and the economic consequences of the conflict in Ukraine as factors of inhibition.

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“Due to the fragility of the economic situation, any new negative event … could push the global economy into recession. This will be the first time in more than 80 years that two global recessions have occurred in the same decade,” the press release said.
Experts cited an unexpected spike in inflation and a sharp rise in rates to contain it, the resumption of a pandemic, or an escalation of geopolitical tensions as examples of such events.
Growth in developed economies will decline to 0.5% in 2023 from 2.5% in 2022, the bank predicts. “Over the past two decades, slowdowns of this magnitude have preceded a global recession,” the release said.
Excluding China, growth in emerging and transition economies will slow to 2.7% from 3.8%. “By the end of 2024, the GDP of countries with transitional and developing economies will be about 6% below the level that was expected before the pandemic,” the document says. The Bank expects global inflation to ease but remain above pre-pandemic levels.

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Translation by RJ983

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