World Bank Warns Global Economy Teetering Towards Recession

World Bank Warns , Global Economy Teetering , Towards Recession.

On January 10, the World Bank warned that the global economy is "perilously close" to experiencing a recession in 2023.

Al Jazeera reports that the World Bank warning comes amid weak growth among all of the world's top economies, including the United States, Europe and China.

Al Jazeera reports that the World Bank warning comes amid weak growth among all of the world's top economies, including the United States, Europe and China.

Al Jazeera reports that the World Bank warning comes amid weak growth among all of the world's top economies, including the United States, Europe and China.

The World Bank's annual report said the organization will slash its previous forecast for global growth this year by nearly half.

Previously, the global money lender predicted global growth would come in at 3%, however the latest annual report modified that prediction to 1.7%.

The World Bank predicts that the U.S. might narrowly avoid a recession this year, despite annual growth of just 0.5%.

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At the same time, the U.S. will remain vulnerable to further disruptions of supply chains if COVID continues to surge or Russia escalates its war in Ukraine.

Russia’s invasion of Ukraine has added major new cost.

The outlook is particularly devastating for many of the poorest economies where poverty reduction is already ground to a halt and access to electricity, fertiliser, food and capital is likely to remain limited for a prolonged period, David Malpass, World Bank President, via Al Jazeera.

According to the World Bank, poorer countries are expected to be hit the hardest by a global downturn.

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Meanwhile, the tepid pace of per capita income growth of just 1.2% in 2023 and 2024 is expected to increase poverty rates.

Addressing the scale of these challenges will require significantly more resources for development and global public goods, David Malpass, World Bank President, via Al Jazeera