The World Bank has revised down its global growth forecasts for 2023, expecting it to be 1.7% from 3% last June due to inflation, higher interest rates and the war in Ukraine.
In the Global Economic Prospects report, the institution revised its forecasts for almost all developed countries and for almost 70% of developing or developing countries with weak growth in the US and zero in Europe.
“I am very concerned about the constant risk of an economic downturn. According to our estimates, global growth between 2020 and 2024 will be less than 2%. This is the weakest five-year growth since 1960,” World Bank President David Malpass said in a telephone press conference.
A moderate global recovery of 2.7% is expected in 2024.
Downward trend with real risk of recessionin the event of a new shock to the economy, be it a spike in Covid-19 cases, inflation or geopolitical tensions.
In developed countries, the slowdown will be more noticeable. The Institute forecasts growth of 0.5% in the US (against 1.9% in June) and zero growth in the Eurozone (against 1.9% in the previous forecast).
Developing countries will not be bypassed, the expected growth in China is 4.3% (a decrease of 0.9 percentage points).