The World Bank cut its global growth forecast in 2023 to 1.7 percent, compared to the 3 percent rate expected 6 months ago. According to the bank, the global economy is expected to grow at a rate of 2.7 percent in 2024.
According to the bank, the sharp decline in growth is expected to be broad-based, with forecasts revised downward to about 95 percent of advanced economies and about 70 percent of emerging market and developing economies.
“The crisis facing development is deepening as global growth prospects worsen, emerging market and developing economies are facing multi-year slowdowns in growth due to heavy debt burdens and weak investment, as global capital is being taken over by advanced economies that are facing very high levels of government debt and high-interest rates,” said David Malpass, President of the World Bank Group.
He stressed that weak growth and investment in business activities would exacerbate serious setbacks in the areas of education, health, poverty reduction and infrastructure, as well as increased demands related to climate change.
Source (Al-Arabiya.net Website, Edited)
