The World Bank has warned that the global economy may fall into recession this year.

(Reuters file photo)

[Financial Channel/Comprehensive Report] The World Bank is worried that further "adverse shocks" may push the global economy into recession in 2023, and small countries will be particularly vulnerable.

Bloomberg reported that the World Bank's semi-annual "Global Economic Prospects" report made the warning. The World Bank said that even without another crisis, global economic growth is still expected to decelerate sharply this year, reflecting the efforts to contain Qualcomm. Expansive austerity policies, deteriorating financial conditions, and the ongoing devastation caused by Russia's invasion of Ukraine.

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The World Bank pointed out that global and national efforts are urgently needed to mitigate the risk of this economic recession, as well as the debt distress of emerging markets and developing economies, and investment growth is expected to be lower than the average level of the past 20 years.

Central banks around the world have launched similar moves, aggressively raising interest rates to ease price pressures, and governments supporting businesses and households by reining in energy costs.

The World Bank said it was now important for policymakers in emerging market and developing economies to ensure that any fiscal support was concentrated on vulnerable groups, that inflation remained stable and that financial systems remained resilient.

Kristalina Georgieva, president of the International Monetary Fund (IMF), also warned in an interview with US media recently that the world will face a "difficult year" in 2023, and pointed out that one-third of the global economy will fall into recession, because The US, EU and China are all slowing down at the same time.

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