‘Precarious’: World Bank Issues Dire Global Economic Forecast

NEW YORK, NY - APRIL 9: A closed retail store is viewed in Manhattan on April 9, 2015 in New York City. Much of New York City is witnessing a flurry of closings of beloved retail stores and restaurants due to a rapid increase in rent. It is estimated that hundreds of small businesses in New York City, one of the most sought after real estate markets in the world, are forced to close every month as rents for both light industrial and storefront space are up nearly 21 percent since 2010 according to CoStar Group. The dire situation for small businesses has led to the campaign #SaveNYC, a grassroots, crowd-sourced movement aimed to "protect and preserve the diversity and uniqueness of the urban fabric in New York City". (Photo by Spencer Platt/Getty Images)
  • The expansion of the global economy will significantly decelerate in 2023 and 2024, according to a report by the World Bank published on Tuesday.
  • “The world economy is in a precarious position,” said Indermit Gill, the World Bank Group’s chief economist and senior vice president. The institution forecasts global growth to slow down from 3.1% in 2022 to 2.1% in 2023, according to the World Bank’s Global Economic Prospects report.
  • The U.S. economy is projected to grow 1.1% in 2023 and slow down to 0.8% in 2024 primarily due to the continuing effects of interest rate hikes since March 2022, according to the report.
  • The World Bank expects global trade expansion to decelerate from 6% in 2022 to 1.7% in 2023, according to the report.