Global economy to tank by 0.4% in 2023 – World Bank
World Bank has disclosed that high interest rates, in addition to the lingering war between Russia and Ukraine, have impacted negatively to global economy further slowing down growth across countries.
The bank in its recently report further disclosed that despite growth of 3.1 per cent recorded last year, the global economy would tank to 2.1 per cent in 2023, a figure 0.4 percentage points higher than an earlier estimate released by the body in January.
World Bank’s Chief Economist, Indermit Gill said it is still one of the weakest growth rates in the past five decades.
“The world economy is in a precarious position,’’ Gill said.
In 2024, the global economy should recover slightly and grow by 2.4 per cent, according to the report.
However, growth could also be lower than expected.
The report said that high global inflation is expected to decline gradually as demand eases and commodity prices weaken.
It could also lead to further tightening of monetary policy.
Widespread bank stress could lead to much weaker growth outcomes.
“It’s important to keep in mind that growth forecasts are not destiny,’’ World Bank President, Ajay Banga, said, adding: “We have a chance to turn the tide, but it will take us all working together.”
