The world will head towards a global recession in 2023 as central banks around the world raise interest rates in response to inflation.

(symbolic picture)

The World Bank 

said that the

is heading towards a dangerous recession due to high inflation, rising interest rates and increasing debt burden on developing countries.

"We have lowered our 2023 growth forecast for global growth from three percent to 1.9 percent," World Bank President David Malpass said at a news conference during the annual meetings of the IMF and the World Bank on Thursday. Moving on.”

Mr Malpass said, “We are focused on helping people move forward in developing countries.

The reason for increasing debt in these countries is the high interest rate.

On the one hand the debt is increasing and on the other hand their currencies are deteriorating.

The fall in the value of currency is increasing the debt burden.

Developing countries face the problem of debt crisis.

He said there is a problem of inflation, interest rates are rising and the capital flows which were flowing to developing countries have stopped.

This is affecting the poor.

He said that the global recession is under certain circumstances.

In a study published in mid-September, the World Bank warned that as central banks around the world raise interest rates in response to inflation, the world will head into a global recession in 2023.

He estimated an increase of 0.5 percent.

He recently cited a World Bank report that said the Kovid-19 pandemic dealt the biggest blow to global poverty-reduction efforts since 1990.

Kovid pushed 70 million people into extreme poverty in 2020 and the Ukraine war has made it worse.

"I think one of the issues the world has to deal with is a change in the direction of fiscal and monetary policies in advanced economies to allow new businesses and capital flows into developing countries," he said.

He said that the world is facing a very challenging environment from advanced economies and it has serious implications which threaten the developing countries.

My concern is that the conditions and trends may persist till 2023 and 2024."

See also :- Delhi: The news of the bomb in the plane coming from Moscow caused a stir, investigation continues at IGI Airport