The World Bank (WB) has cut the global growth forecast for 2023 by 1.2 per cent from 2.9 per cent, warning the world is at risk of a recession.
The global financial institution cited a combination of factors for lowering its estimate.
The factors are high inflation, rising interest rates and lower investment
Other factors include Russia’s invasion of Ukraine as threats to growth, apart from China’s COVID-related disruptions and stress in its real-estate sector.
“Global growth has slowed to the extent that the global economy is perilously close to falling into recession,” the WB said in its latest report released on Tuesday.
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It further warned that fresh setback like escalating global tensions, inflation and rising interest rate could worsen the global economy.
It added that these could result in a second recession in three years.
The WB forecasts U.S. GDP to grow 0.5 per cent compared to 2022 and expects new growth for European bloc.
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