The impact of central bank rate increases is getting worse, Russia’s war in Ukraine is still going on, and the world’s major economic engines are sputtering, so the World Bank on Tuesday slashed its growth forecasts for 2023 to levels that are teetering on the verge of recession for many countries.
The development lender forecast 2023 global GDP growth of 1.7%, the slowest rate since 1993 excluding the recessions of 2009 and 2020. The bank predicted 3.0% global growth in 2023 in its previous Global Economic Prospects report from June 2022.
It predicted that global growth would pick up to 2.7% in 2024, which is less than the 2.9% estimate for 2022, and that average growth for the period of 2020–2024 would be less than 2%, which would be the slowest five-year pace since 1960.
Major slowdowns in advanced economies, including sharp reductions in its forecast to 0.5% for both the US and the euro zone, according to the bank, could portend a new global recession that would occur less than three years after the previous one.
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