World Bank Report Forecasts Bleak Global Economic Outlook, Citing ‘Adverse Developments’ and ‘Long-Lasting Slowdown’

World Bank Report Forecasts Bleak Global Economic Outlook, Citing ‘Adverse Developments’ and ‘Long-Lasting Slowdown’

On Jan. 10, 2023, the World Bank published its Global Economic Prospects report, stating that the outlook for the global economy and future economic conditions is bleak. According to the report, 2023 growth forecasts have been cut across the board, with the global economy projected to grow by 1.7% in 2023 and 2.7% in 2024. The World Bank also cited a number of adverse developments that could push the world’s economy into a deep recession. World Bank Report Urges Action on Climate Change, Increased Investment to Offset Adverse Economic Shocks

The World Bank, the financial organization with 174 member countries, released its Global Economic Prospects report on Tuesday. The report envisions a “sharp, long-lasting slowdown to hit developing countries hard.” The World Bank cites numerous issues plaguing the global economy, including the Covid-19 pandemic and “escalating geopolitical tensions,” as reasons why the world’s economy could spiral into a recession. The report also mentions interest rate hikes by central banks and “higher-than-expected inflation” as contributing factors to the “adverse developments.” World Bank GDP growth forecasts for 2023 and 2024.

The World Bank’s report further detailed that inflation has dropped to some degree at the end of 2022. It also noted that skyrocketing commodity and energy prices have subsided for the time being. The World Bank warns, however, that global economies will likely still see inflation persist, and supply disruptions could stem from adversities such as the Covid-19 pandemic and the Ukraine-Russia war in Europe. If inflation persists, the World Bank warns that benchmark bank rates could continue to climb in order to curb inflationary pressures. World Bank GDP growth forecasts for 2023 and 2024 continued.

“Growth in advanced economies is projected to slow from 2.5% in 2022 to 0.5% in 2023. Over the past two decades, slowdowns of this scale have foreshadowed a global recession,” the World Bank’s Global Economic Prospects report details. “In the United States, growth is forecast to fall to 0.5% in 2023—1.9 percentage points below previous forecasts and the weakest performance outside of official recessions since 1970. In 2023, euro-area growth is expected at zero percent—a downward revision of 1.9 percentage points. In China, growth is projected at 4.3% in 2023—0.9 percentage point below previous forecasts.”

The report’s summary concludes that one thing that can help the global economy is by improving “long-term growth prospects by bolstering resilience to climate change.” The World Bank insists that policymakers need to “address climate change and support people affected by crises and hunger.” In order to “offset the long-term damage from the adverse shocks of the past three years,” emerging markets and developing economies will need to “substantially increase investment,” according to the World Bank’s report. Tags in this story Adverse, Bleak, Central Bank, climate change, Climate resilience, COVID-19, Development, development finance, Developments, economic, economic recovery, economic slowdown, economics, financial, Financial Crisis, Fiscal policy, Forecasts, geopolitical, global recession, growth, Inequality, inflation, institution, interest rate, investment, Monetary Policy, Outlook, poverty, Prospects, Recession, report, sustainable development, Tensions, World Bank

What are your thoughts on the World Bank’s Global Economic Prospects report and its predictions for the global economy? Let us know your thoughts about this subject in the comments section below. Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today. Report: Nigeria to Stop Cash Withdrawals From Government Accounts ECONOMICS | 2 days ago Mexican CBDC Unlikely to Be Ready by 2024 ECONOMICS | 3 days ago

Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleUS Arrests ‘Mutant Ape Planet’ NFT Creator in $3M ‘Rug Pull’ Scheme to Defraud Crypto Investors Next articleBitget Launches Fund Custody Service With Dedicated Wallet to Elevate Safety Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItNFT Sales Volume Saw a Small Uptick This Week — Moonbirds, Mutant Apes Take Top Sales

Non-fungible token (NFT) sales saw a small uptick over the last week as $658.4 million in NFT sales were recorded, up 3.35% in seven days. Out of 15 blockchains, Polygon-based NFT sales saw the largest increase in volume, jumping 106.68% ... read more.SEC Risks Violating Admin Procedure Act by Rejecting Spot Bitcoin ETFs, Says Grayscale Bill ‘On Digital Currency’ Caps Crypto Investments for Russians, Opens Door for Payments Interest in Real Estate Investments in Spain Grew 400%, With Some Using Crypto and Stocks as Payment Method Ethereum Foundation"s Financial Report Discloses It Holds $1.6 Billion in Assets, 80.5% Held in Ether