A second recession in the same decade is just one more blow away for the global economy, something that hasn’t happened in more than 80 years.
That is the most recent admonition issued by the World Bank, which significantly lowered its forecast for global economic growth on Tuesday.
The group now predicts that the global economy will only grow by 1.7% this year, which will be devastating for developing nations that have already been severely affected by the pandemic and rising interest rates. It anticipates that growth will resume at 2.7% in 2024.
In a statement, World Bank President David Malpass stated, “The crisis facing development is intensifying as the global growth outlook deteriorates.”
Growth is being hampered by high inflation, aggressive monetary policy, deteriorating financial conditions, and the shock waves from Russia’s invasion of Ukraine.