The economies of the United States, the eurozone and China will grow more slowly this year than originally forecast, which will also sign off on economic growth in the rest of the world. It follows from the current World Bank forecast.
World economic growth will slow substantially in 2022. Global gross domestic product is set to increase just 4.1 per cent this year, according to the World Bank , with its growth rate at around 5.5 last year, according to preliminary estimates percentages. The slowdown will also occur in 2023, when global GDP is set to rise just 3.2 percent.
“The rapid spread of the omicron variant indicates that the pandemic will also disrupt economic activity this year. In addition, a substantial slowdown in the largest economies including the U.S. and China will undermine foreign demand for the production of emerging economies,” the World Bank warns.
The institution also highlights persistent obstacles in supply chains and inflationary pressures. But at the same time, the financial vulnerability of many countries in the world will increase, increasing the risk of a “hard landing.” The World Bank also predicts that developed countries will recover economically fully from the pandemic as early as 2023, while emerging ones will still be about 4 percent below pre-pandemic levels.