How is the world economy now?
2023-06-13 14:35:52
The world economy is not doing very well right now. According to the World Bank, the global economy is projected to grow by only 1.7% in 2023 and 2.7% in 2024. The sharp downturn in growth is expected to be widespread, with forecasts in 2023 revised down for 95% of advanced economies and nearly 70% of emerging market and developing economies. The main factors behind this slowdown are the financial sector turmoil, high inflation, ongoing effects of Russia’s invasion of Ukraine, and three years of COVID. The outlook is uncertain and the risk of financial stress in emerging market and developing economies is intensifying amid elevated global interest rates.
This slowdown will be broad-based, with countries accounting for about one-third of the global economy poised to contract this year or next. The three largest economies, the United States, China, and the euro area will continue to stall. Among the regions, Europe and Central Asia are expected to experience the lowest growth rate of 0.1% in 2023, followed by Latin America and the Caribbean with 1.3%. The highest growth rate is projected for East Asia and Pacific with 5.1% in 2023, mainly driven by China.
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This slowdown will be broad-based, with countries accounting for about one-third of the global economy poised to contract this year or next. The three largest economies, the United States, China, and the euro area will continue to stall. Among the regions, Europe and Central Asia are expected to experience the lowest growth rate of 0.1% in 2023, followed by Latin America and the Caribbean with 1.3%. The highest growth rate is projected for East Asia and Pacific with 5.1% in 2023, mainly driven by China.
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