Global Economy In ‘Precarious Position’- World Bank Warns

A new report from the World Bank has stated that high interest rates and the Russian war in Ukraine has continued to significantly slow global economic growth.

The report states that, following growth of 3.1 per cent last year, the global economy would slow to 2.1 per cent in 2023.

The figure for 2023 was, however, 0.4 percentage points higher than an estimate released by the bank in January.

World Bank’s Chief Economist, Indermit Gill said it is still one of the weakest growth rates in the past five decades.

“The world economy is in a precarious position,’’ Gill said.

In 2024, the global economy should recover slightly and grow by 2.4 per cent, according to the report.

However, growth could also be lower than expected.

The report said that high global inflation is expected to decline gradually as demand eases and commodity prices weaken.

It could also lead to further tightening of monetary policy.

Widespread bank stress could lead to much weaker growth outcomes.

“It’s important to keep in mind that growth forecasts are not destiny,’’ World Bank President, Ajay Banga, said.

“We have a chance to turn the tide, but it will take us all working together,’’ he added.

NAN/Confidence Okwuchi