The World Bank on Tuesday lowered its global economic growth forecast to 4.1 percent for this year, down 0.2 percentage points from its previous forecast.
Next year, the global economy is projected to grow 3.2 percent, revised upward 0.1 percentage point, the bank said in its latest Global Economic Prospects report.
The revisions stemmed from pent-up demand dissipating, and fiscal and monetary support unwinding across the world.
The global economy is slowing down amid threats from coronavirus disease 2019 (Covid-19) variants and a rise in inflation, debt, and income inequality that could endanger the recovery in emerging and developing economies, it said.
The bank said the pandemic will likely continue to disrupt economic activity in the near term with the rapid spread of the Omicron variant.
The notable deceleration in major economies, including the US and China, will weigh on external demand in emerging and developing economies, it warned.
The bank projected growth in advanced economies would decline from 5 percent in 2021 to 3.8 percent this year, and 2.3 percent in 2023 while emerging and developing economies are expected to grow 4.6 percent in 2022 and 4.4 percent next year.
The bank also cut its growth projection for the world’s largest two economies, as the US is expected to grow 3.7 percent this year and China, 5.1 percent.
Turkiye’s economy is forecast to expand by 2 percent in 2022 and 3% in 2023, both revised downward from the previous projection.
Source: Philippines News Agency