The World Bank has lowered its 2023 growth forecast for the global economy to 1.7%, which is half the pace it predicted last June.
The Washington, D.C. based lender now anticipates that global economic growth in 2023 will be the third lowest in the last 30 years after contractions in 2009 and 2020.
The World Bank is warning that several potential adverse shocks that include inflation, higher interest rates, and the war in Ukraine, could push the global economy into a recession this year.
The bank continues to forecast economic weakness in the key economies of the U.S., China, and European Union in 2023.
The World Bank also called for financial systems to remain resilient against economic pressures and shocks, and requested an increase in investment for developing nations throughout the world.
