It is one of the lowest growth rates in at least two decades. The UN Department of Economic and Social Affairs said the current global economic slowdown “affects both superpowers and developing countries with many facing risks of recession in 2023.” The World Bank and the International Monetary Fund also lowered their growth forecasts for this year.
The United Nations joins the group of organizations that have lowered their global growth forecast. According to economists, the previous forecast of 3% for 2023 cannot be achieved due to several factors, including high inflation, the energy and food crisis caused by the war in Ukraine and complications from the Covid-19 pandemic that has complicated the reactivation of China, the second economy in the world.
According to the UN, if inflation gradually decreases and the situation improves in most of the previous challenges, the rebound for 2024 can reach 2.7%.
“A severe and widespread slowdown of the global economy is looming amid high inflation, aggressive monetary tightening and greater uncertainty,” UN Secretary General António Guterres described the economic situation for the world this year with these words. in the 178-page report.
The IMF and the World Bank see a bleak economic outlook
In early January, the World Bank (WB), which lends money to the poorest countries for development projects, cut its growth forecast by nearly 50%, saying the global economy will grow 1.7% this year. and not 3% as previously estimated.
Another of the organizations that had foreseen a gradual slowdown in world growth was the International Monetary Fund (IMF), which in October of last year said that from the 6% registered in 2021, the world would go to 3.2% in 2022 and up to 2.7% in 2023; However, this last figure can be reduced much more after the estimates of a global recession, the massive cuts of the big technology companies and the high interest rates.