The World Bank is concerned that new negative shocks will plunge the global economy into recession in 2023.
The World Bank’s “Global Economic Outlook” semi-annual report, to be released tomorrow, states that even if a new crisis does not occur, global growth this year due to the continued effects of synchronized policy tightening aimed at controlling high inflation, worsening financial conditions and Russia’s attack on Ukraine. It will be emphasized that a sharp weakening is expected.
According to the World Bank’s statement, the report will call for “urgent global and national effort” to reduce the risk of contraction in heavily indebted emerging markets and developing economies.
“In emerging markets and developing economies, it is critical that policymakers ensure that any financial support is focused on vulnerable groups,” the statement said.