Global Economy Close To A Recession: World Bank
HY News
14 October, 2022 12:10 pm IST
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World Bank President David Malpass on Thursday said the global economy is "dangerously close" to a recession, as inflation remains elevated, interest rates rise, and growing debt burden hits the developing world. The President said the World Bank has lowered 2023 growth forecast from 3 percent to 1.9 percent for global growth.
That's dangerously close to a world recession, he said. The World Bank President Malpass was talking to reporters on the sidelines of the annual meeting of the World Bank and the International Monetary Fund in Washington.
"The growth rate, we've lowered our 2023 growth forecast from 3 per cent to 1.9 per cent for global growth. That's dangerously close to a world recession, and that's - a world recession could happen under certain circumstances," Malpass told reporters on the sidelines of the annual meeting of the World Bank and the International Monetary Fund here.
"All of the problems that people have taken note of, the inflation problem, the interest rate rises, and the cutoff of capital flows to the developing world hits the poor hard," he said, adding that's a huge challenge for the bank.
Some countries, he said, have already been raising their interest rates and may be reaching a point where they don't have to keep raising. Some countries have done one kind of subsidy versus another kind of subsidy.
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