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- WASHINGTON, June 06, 2023 — Global growth has slowed sharply and the risk of financial stress in emerging market and developing economies (EMDEs) is intensifying amid elevated global interest rates, according to the World Bank’s latest Global Economic Prospects report. Global growth is projected to decelerate from 3.1% in 2022 to 2.1% in 2023.
www.worldbank.org/en/news/press-release/2023/06/06/global-economy-on-precarious-footing-amid-high-interest-ratesGlobal Economy on Precarious Footing Amid High Interest Rates
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Jun 6, 2023 · Global growth has slowed sharply and the risk of financial stress in emerging market and developing economies (EMDEs) is intensifying amid elevated global interest rates, according to the World Bank’s Global Economic Prospects report of June 2023.
- Global Economic Prospects: Sharp, Long-lasting Slowdown to ...
Global growth is slowing sharply in the face of elevated...
- Global Economic Prospects: Sharp, Long-lasting Slowdown to ...
- Even as Risks Shift, Domestic Sentiment Holds Steady
- Respondents Report A Positive—Albeit Restrained—Company Outlook For 2024
- The View from The C-Suite
- Views of The Economy Continue to Lean Toward The Positive For A Second Quarter
- Expected Risks from Economic Slowdown in China Supersede Interest Rate Concerns
- Improving Views on Domestic Conditions, with Some Regional Differences
- Evolving Views on The Interest Rate Environment
- As Global Optimism Grows, New Risks Surface
- Economic Optimism Spikes, Then Moderates, During March
- Geopolitical Instability, Inflation Remain Top Concerns
For the first time in 2023, geopolitical instability tops the list of threats to growth in respondents’ own countries. Meanwhile, concerns over political transitions have risen. This risk is now cited fourth most often as a threat to domestic growth, and more than twice as often as it was in March (23 percent versus 10 percent). Respondents in Indi...
When asked about their companies’ prospects in the coming months, respondents’ answers echo the cautious optimism they share about the global economy. Their positivity about future profits has declined since September’s survey, but they remain largely upbeat (60 percent believe profits will increase, down from 66 percent), while a plurality of resp...
We also asked executives about their leadership teams’ most important priorities in 2024. Of eight potential issues, they rank achieving robust, consistent growth, building distinctive institutional capabilities, and digitizing the enterprise as their top priorities for the year ahead. Generative AI (gen AI) is fourth on the list, while geopolitica...
In our March survey, respondents tended to see the global economy as worse off than it had been six months earlier, and they were equally split on whether the coming months would bring improvement or stagnation. The past two quarters’ results suggest more favorable views of global economic conditions, both backward- and forward-looking: overall, re...
While geopolitical instability and conflicts remains the most-cited risk to global growth for the sixth quarter in a row, an economic slowdown in China has emerged in the latest survey as a risk to both the global economy and to respondents’ domestic economies. China’s slowing economic activity—added as an answer choice in the latest survey7“Slowdo...
Overall, respondents report more positive views on their home economies than they have in the past year (Exhibit 1). Forty-eight percent say economic conditions at home have improved in the past six months, up from 40 percent last quarter. At the same time, there are some notable changes and differences by region—namely, in India (Exhibit 2). Respo...
Although interest rates remain a top three risk to growth at home, other results suggest a shift in respondents’ perceptions on the topic. For the first time since June 2021, less than half of all respondents believe their home countries’ interest rates will increase in the coming months (Exhibit 3). While respondents in emerging economies are more...
Executives’ views on the world economy are brightening as well, with a steadily growing share of respondents reporting improved global conditions and a positive outlook for the months ahead (Exhibit 4). And while they continue to cite geopolitics and inflation as top risks to global growth, respondents have identified some newly emerging threats. T...
In early March, respondents reported views on the global economy that were more positive than they had been in several quarters. Forty percent said that global economic conditions had improved in the previous six months, the first time in a year that respondents were more likely to report improvements than declines. And 45 percent expected global c...
When asked about risks beyond their countries’ borders, respondents have shared consistent concerns about geopolitical instability. In early March, two-thirds cited it as a risk to global growth, a share that has steadily increased since September 2022—and a similar share in the late March survey say the same. At the same time, concerns over financ...
Jan 10, 2023 · Global growth is slowing sharply in the face of elevated inflation, higher interest rates, reduced investment, and disruptions caused by Russia’s invasion of Ukraine, according to the World Bank’s January 2023 Global Economic Prospects report.
May 2, 2023 · The report also found that property markets and financial businesses as well as sovereign and corporate debt sustainability remain large sources of concern with regards to high interest rates. Of the chief economists surveyed in the report, 82% said they expect the pace of interest-rate raises to slow over the remainder of 2023.
- Overview. Global recovery remains slow, with growing regional divergences and little margin for policy error. The baseline forecast is for global growth to slow from 3.5 percent in 2022 to 3.0 percent in 2023 and 2.9 percent in 2024, well below the historical (2000–19) average of 3.8 percent.
- Projections Table. Download Data.
- Chapters in the Report. Chapter 1: Global Prospects and Policies. Divergent growth prospects across the world’s regions pose a challenge to returning to prepandemic output trends.
- Statistical Appendix. Statistical Appendix: Data assumptions, conventions, and classifications. Statistical Appendix Table A: Key Global Economic Indicators.
Although inflation is likely to ease steadily in 2023, interest rates will stay at peak levels for some time, with important implications for GDP growth, bond yields, exchange rates and economic risks.
Global GDP growth is projected to ease to 2.7% in 2024, from 2.9% this year, before edging up to 3% in 2025 as real income growth recovers and policy interest rates start to be lowered (Table 1.1).
