The World Bank has warned of a “chilling” global economic outlook, with growth expected to slow sharply in 2023 as central banks around the world continue to raise interest rates to combat inflation..
In its latest Global Economic Prospects report, the World Bank said it expects global growth to slow to 1.7% in 2023, down from an estimated 2.9% in 2022. This is the weakest growth rate since 2009, when the global economy was reeling from the financial crisis..
The World Bank said that the slowdown in growth is being driven by a combination of factors, including the war in Ukraine, rising interest rates, and slowing demand in China. The war in Ukraine has disrupted global supply chains and led to higher energy and food prices, which have put a strain on households and businesses around the world..
Rising interest rates are also weighing on the global economy. Central banks around the world are raising interest rates in an effort to combat inflation, which has reached its highest levels in decades in many countries. Higher interest rates make it more expensive for businesses and consumers to borrow money, which can slow economic growth..
Slowing demand in China is also a major factor in the global economic slowdown. China is the world’s second-largest economy, and its growth has been a major driver of global economic growth in recent years. However, China’s economy has been slowing in recent months, as the country grapples with a property market crisis and a resurgence of COVID-19 cases..
The World Bank said that the global economy is at a .
