The World Bank has reviewed downward its global economic growth forecast for 2023: it now expects the world economy to grow by 1.7%, down from its 3% forecast in June 2022.
Should the new forecast come true, this year's growth would be the third weakest in 30 years, after the recessions of 2009, caused by the global financial crisis, and of 2020, brought on by the novel Coronavirus pandemic.
The Bank cites persistently high inflation, central bank interest rate hikes and the effects of the war in Ukraine among factors leading to the lower-than-expected growth.
It warns of the risk of a global recession should there be additional shocks. That would make it the first time since the 1930s that the world would have experienced two global recessions within the same decade.
The international institution has now adjusted its growth forecast for the United States to 0.5% and expects zero growth in the Euro Zone.
Further, it is concerned about the impact of the growth slowdown on social issues and on the fight against climate change.
For example, it expects that economic growth in Sub-Saharan Africa will be insufficient to combat extreme poverty there.
In 2024, however, the global economy should rebound somewhat, with a growth rate of 2.7%.
