Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
💎 Reveal Undervalued Stocks Hiding in Any Market Get Started
Global economies expected to slow sharply in 2023 amid inflation, World Bank says
© Reuters
By Liz Moyer
Investing.com -- The global economy will slow this year as high inflation keeps alive the risk of a recession, according to the latest assessment by the World Bank.
Global growth is forecast to slow to 1.7% this year, after estimating last June that it would grow at a 3% rate in 2023.
The lower rate, if it comes to pass, would make this year among the weakest years for growth in three decades, ranking third worst after only the financial crisis in 2009 and the downturn in 2020 at the start of the pandemic.
The downturn was expected to be widespread. The 2023 forecast is revised down for 95% of advanced economies and 70% of emerging market and developing economies, the World Bank said.
“The crisis facing development is intensifying as the global growth outlook deteriorates,” said World Bank Group President David Malpass. “Emerging and developing countries are facing a multi-year period of slow growth driven by heavy debt burdens and weak investment as global capital is absorbed by advanced economies faced with extremely high government debt levels and rising interest rates.”
Malpass added in a statement from the bank that weakness in growth and business investment “will compound the already-devastating reversals in education, health, poverty, and infrastructure and the increasing demands from climate change.”
Prominent Wall Street bankers are also warning of a possible downturn ahead. JPMorgan’s CEO Jamie Dimon said in a television interview on Tuesday that the Federal Reserve may have to move rates to 6% in its fight against inflation. Officials from the Fed have indicated rates could rise above a 5% forecast from last year.
Goldman Sachs CEO David Solomon said in December that there is a risk of recession. The bank is expected to start cutting jobs this week amid a slump in deal activity.
In advanced economies, growth is expected to slow to 0.5% in 2023 from 2.5% in 2022, the World Bank said, noting that over the past 20 years, slowdowns of that scale have foreshadowed a global recession. U.S. growth is forecast to fall to 0.5%, the weakest outside of official recessions since 1970, the bank said.
Related Articles
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.