In its latest economic outlook, the World Bank is forecasting a global recession as interest rates
rise to dampen inflation that remains unsustainably high in most countries.
The Washington, D.C.-based financial institution says that central banks around the world are
removing fiscal support at a pace not seen in half a century, and that is prompting a global
economic slowdown.
Interest rates could top 6% in many jurisdictions as central banks work to bring inflation back
within their target range, according to the World Bank’s modeling.
The World Bank forecasts that 2023 global gross domestic product (GDP) growth will slow to
0.5% and contract 0.4% in per capita terms, meeting the technical definition of a recession.
The number of countries raising interest rates is forecast to reach its highest level since the
early 1990s next year, according to the World Bank.
