The global economy is slowing down.
According to the World Bank’s new Global Economic Prospects report, global economic growth is projected to slow to 2.1 percent in 2023, down from 3.1 percent in 2022.
For advanced economies, GDP growth is expected to clock in at 0.7 percent this year, down from 2.6 percent last year. They are also anticipated to be weak in 2024.
The U.S. is forecast to grow just 1.1 percent this year and 0.8 percent in 2024.
“The world economy is in a precarious position,” said Indermit Gill, the World Bank Group’s Chief Economist and Senior Vice President, in a statement. “Outside of East and South Asia, it is a long way from the dynamism needed to eliminate poverty, counter climate change, and replenish human capital. In 2023, trade will grow at less than a third of its pace in the years before the pandemic. In emerging markets and developing economies, debt pressures are growing due to higher interest rates. Fiscal weaknesses have already tipped many low-income countries into debt distress. Meanwhile, the financing needs to achieve the sustainable development goals are far greater than even the most optimistic projections of private investment.”
Interestingly enough, it appears that advanced countries could avert a recession, although Germany slipped into a downturn in the first quarter.
The report also warned about higher interest rates impacting development economies and emerging markets.
Here are some charts:
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