(Washington Comprehensive) The World Bank released a global economic outlook report, which greatly reduced the global growth expectations in 2023 to 1.7%. At the same time, warning that new negative impacts may cause the world to recession.

The latest global economic outlook report released by the World Bank on Tuesday (January 10) pointed out that due to factors such as high inflation, rising interest rates, decreased investment, and the Russian and Ukraine War, global economic growth has slowed down sharply to "Close to the level of recession. "

According to the report, in the past 30 years, 1.7%of global economic growth is expected to be the global recession caused by the outbreak of the crown disease in 2020 and the 2009 international financial crisis.

The World Bank predicts that 95%of developed economies and nearly 70%of emerging markets and developing economies, the growth of 2023 has lowered from previous forecasts.

China's economic growth is 4.3%lower than forecast 0.9 percentage points

According to the report, the economic growth of the developed economy increased by 0.5%in 2023, a 1.7 percentage point of 1.7 percentage points from the forecast of June last year.Among them, the US economic growth is expected to be reduced by 1.9 percentage points to 0.5%, which is the year of the worst performance except the 1970 decline; the economic growth expectations of the euro zone will be reduced by 1.9 percentage points to zero growth.

The report also predicts that China's economy will increase by 4.3%in 2023, 0.9 percentage points lower than previous forecasts.

The growth rate of economies and developing economies except China and developing economies will be reduced from 3.8%in 2022 to 2.7%in 2023. The main reason is that external demand has fallen sharply, and it is also subject to high inflation and currency depreciation, Tighten financing conditions, and the influence of other domestic unfavorable factors.

The report said that in the next two years, the average annual growth rate of the per capita income of emerging markets and developing economies is only 2.8%, which is one percentage point lower than the average level between 2010 and 2019.In Africa, southern Africa, which accounted for about 60%of the world's extreme poverty, from 2023 to 2024, the average per capita income growth rate may be only 1.2%, resulting in a rise in poverty rather than decline.

The President of the World Bank Malpas said: "Global Capital is absorbed by developed economies with high levels of government debt and rising interest rates. In this case, emerging markets and developing countries are due to heavy debt and development countries.Weak investment may grow weak in the next years. "

The

Report believes that global policy makers must ensure that financial support focuses on the focus of vulnerable groups, maintain stability in inflation expectations, and strengthen the toughness of the financial system.