Deep recession in global economy: World Bank

It added that the loss of education, global inflation, supply chain disruption and other global challenges remind us that the impact of the COVID-19 pandemic is still here.

Talking about growth in its report, 2022 in nine chartsIt said, “The global economy is in its sharpest recession following a post-recession recovery since the 1970s – with global consumer confidence already having declined much sharper than during previous global recessions.”

The world’s three largest economies—the United States, China and the euro area—are slowing rapidly. Under these circumstances, even a minor hit to the global economy next year could tip it into recession.

The World Bank in its report also said that the increase in the severity of natural hazards highlights the social and economic impacts of climate change.

Noting that 2022 was marked by a sharp increase in food insecurity around the world, the report said, the war in Ukraine, high inflation, supply chain disruptions, and the global economic slowdown have all combined to make many agricultural products and There has been a big price increase for inputs. , such as fertilizer.

The report notes that the COVID-19 pandemic has dealt the biggest blow to global poverty reduction efforts in decades, and the recovery has been highly uneven.

“By the end of 2022, more than 685 million people could live in extreme poverty – making 2022 the second worst year for poverty reduction in the last two decades (after 2020),” it said.

It also said that last year saw a debt crisis facing developing countries, with nearly 60 per cent of the world’s poorest countries either in debt crisis or at risk of it.

Earlier, the world Bank slashed its China growth forecast for the year as the pandemic and weaknesses in the asset sector hit the world’s second-largest economy. In an official statement, the World Bank said it lowered its forecast to 2.7% from 4.3% estimated in June. It revised its forecast for next year down from 8.1% to 4.3%.

The slowdown in China comes as the global economy is battered by rising interest rates aimed at fighting rising inflation, triggered by Russia’s war in Ukraine as well as global supply chain snarls.