the World Bank latest Global Economic Outlook The report has warned that amid fragile economic conditions, any new adverse developments such as higher-than-expected inflation, abrupt interest rate hikes, a resurgence of the COVID-19 pandemic or escalating geopolitical tensions may emerge could plunge the global economy into recession.

“This would be the first time in more than 80 years that two global recessions have occurred within the same decade,” it said.

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The report pointed out that growth in per capita income in emerging and developing countries is expected to average 2.8% over the next two years – a full percentage point below the 2010-2019 average.

President of the World Bank Group David Malpass said the development crisis is deepening as global growth prospects deteriorate. “Emerging and developing economies face a multi-year streak of slow growth, fueled by high debt burdens and weak investment, as global capital is absorbed by advanced economies that face extremely high sovereign debt and rising interest rates,” he said.

Growth forecasts: According to the report, growth in advanced economies is expected to slow to 0.5% in 2023, from 2.5% in 2022. A slowdown of this magnitude has been indicated over the past two decades a global recession, it stated. “In the United States, growth is expected to slow to 0.5% in 2023 — 1.9 percentage points below previous forecasts and the weakest performance outside of official recessions since 1970,” it said.

The report also found that by the end of 2024, GDP levels in emerging and developing countries will be nearly 6% below expected pre-pandemic levels. “Although global inflation is expected to moderate, it will remain above pre-pandemic levels,” it said.

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