The global economy will come “perilously close” to a recession this year, the World Bank warned on Tuesday as it slashed its 2023 growth forecasts.
The lender cut its estimate for global GDP growth by almost half, to 1.7%, saying major slowdowns in advanced economies – including sharp cuts to its forecast to 0.5% for both the United States and the euro zone – could trigger a global recession less than three years after Covid caused the last one.
In its previous Global Economic Prospects report, in June 2022, the bank had forecast 2023 global growth at 3.0%.
