World Bank sees major economies growing at much slower pace thanks to higher rates and banking stress
- The institution said advanced economies the U.S., Japan and Euro area countries are expected to grow by only 0.7% in 2023, down from 2.6% in 2022.
- The U.S. is projected to grow 1.1%, while the Euro area and Japan are projected to see GDP growth of less than 1% in 2023.
The World Bank says global growth has sharply slowed amid ongoing high inflation and overhangs of the banking crisis result in worsening credit conditions.
Growth forecasts for advanced economies project just 0.7% increase this year, down from 2.6% estimated growth in 2022. This marks "one of the weakest growth rates in the last five decades," Gill told reporters on Tuesday.
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