On January 10, 2023 the World Bank released a World Economic Outlook report, announcing that the future of the global economy is looking grim. The report states that growth forecasts for 2023 were reduced across the board, with the global economy estimated to grow between 1.7% and 2.7%. The World Bank specified numerous global economic factors as the source of this recession, such as the Covid-19 Pandemic and increased geopolitical tensions.
World Bank Report Calls for Action on Climate Change and Greater Investment to Counteract Negative Economic Effects
The World Bank, a financial organization that has 174 members, published its World Economic Outlook Report on Tuesday. The report predicts a “sharp and long-lasting slowdown” that will have a negative impact on developing countries. The report explains that rising inflation, increased benchmark bank rates, supply disruptions, and other “adverse developments” are reasons for the global economy to enter a recession.
The World Bank Reports also explains that inflation has decreased in some areas, and energy and commodity prices are at a more manageable level. Despite this, the Bank warns that inflation could still be a problem in global economies. Supply disruptions due to the Covid-19 pandemic and the Ukraine-Russia war in Europe could also be a major contributor to inflationary pressures. The Bank of England has suggested that this could be countered by increasing benchmark bank rates.
The report concludes that the improvement of the weather can make a significant difference in the
