World Bank Warns Of Risk Of Global Recession This Year

Foreign media reported on January 10 that the World Bank warned on the same day that the global economy will be close to recession this year due to weak growth in top economies such as the United States, Europe, and China.

In an annual report, the World Bank cut its forecast for global economic growth this year by nearly half, to 1.7 percent from a previous forecast of 3 percent. If that forecast proves accurate, it would be the second weakest growth in three decades after the 2008 global financial crisis and the deep recession caused by the CCP-virus pandemic in 2020.

The World Bank predicts that the U.S. economy will barely achieve 0.5% growth. Although a recession may be avoided, U.S. businesses and consumers face negative impacts in the face of high prices, high borrowing rates, and global weakness. If the CCP-virus spike continues or the war in Ukraine worsens, the U.S. will be affected by further disruptions to supply chains.

And Europe, a long-term major trading partner of China, would be deeply weighed down by its economic weakening. After growing by 3.3% in 2022, the EU’s economy will stop growing altogether in 2023. The report expects China to grow by 4.3%, almost a percentage point lower than the previous forecast.