World Bank pessimistic for global growth in 2023

It now anticipates growth at 1.7% against 3% last June.

In a few months, the panorama of the world economy has darkened markedly under the effect of high inflation, the rise in interest rates, the decline in investment and the repercussions of the war in Ukraine. Highlighting this combination of negative factors, the World Bank seriously downgraded its growth scenarios on Tuesday. The international organization is counting on an increase in world GDP of only 1.7% this year, while in June it was still forecasting 3%. It only expects a weak recovery in 2024, of 2.7%.

Apart from the two exceptional years of post-war recession, 2008 due to the Lehman financial crash, and 2020 due to the pandemic, this is the “weakest growth rate in more than three decades”, commented Ayhan Kose, director of research of the Bank. Given the fragility of economic conditions, warns the World Bank, any new adverse development – such as inflation…

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