World Bank predicts sluggish global growth due to higher rates and economic stress.
TL;DR
The World Bank has downgraded its growth forecasts for advanced economies, including the US, Japan, and Euro area countries, due to higher interest rates and the overhangs from this year's banking crisis. The bank estimates that overall global growth will decelerate to 2.1% in 2023, down from 3.1% in 2022. Emerging and developing economies are forecasted to see a slight uptick in GDP, but excluding China, growth in developing economies would be less than 3%. The reduced forecasts for growth reflect broad-based downgrades stemming from several overlapping shocks, including spillover effects from the recent banking crisis seen in the US and advanced economies.
Topics:businesseconomics#banking-crisis#developing-economies#economic-growth#economics#interest-rates#world-bank
- World Bank sees major economies growing at much slower pace thanks to higher rates and banking stress CNBC
- Global economy to slow to lowest level since the 2008 financial crisis: World Bank Yahoo Finance
- World Bank Projects Weak Global Growth Amid Rising Interest Rates The New York Times
- Global economy struggles amid inflation, pandemic aftershocks and war The Washington Post
- World Bank Brightens View of Global Growth This Year, Downgrades 2024 The Wall Street Journal
Want the full story? Read the original reporting
Read on CNBC