
The World Bank said in its annual report on Tuesday that it has reduced the global growth forecast for 2023 to 1.7 percent from the earlier three percent. The financial body also said that the global economy will be close to recession in the current year due to a decline in the growth rate of the world's leading economies (the US, China, and Europe).
If the forecast made by the World Bank in the released report proves to be true, then this will be the third time in three countries, when the economic growth will be the weakest. Earlier, due to the global financial crisis of 2008, and the corona epidemic of 2020, there was a big decline in the global growth rate. According to the report, America can avoid recession this year. However, its growth rate is estimated to be only 0.5 percent.
The report said that due to the Corona epidemic and the Ukraine conflict, there could be disruption in the supply chain in the US. Europe may have to bear the brunt of China's weak economy. It further states that rising interest rates in the US and Europe will attract investment from poorer countries, leading to an investment crisis in these countries.
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