World Bank – Global Economic Prospects Jan 2023

The Global Economic Prospects report by the World Bank highlights a sharp and long-lasting slowdown in global growth, with a decline to 1.7% in 2023. The report states that the deterioration is broad-based, with per-capita income growth slowing down in virtually all regions of the world. The setback to global prosperity is likely to persist, with GDP levels in emerging-market and developing economies (EMDEs) expected to be about 6% below the level expected before the pandemic by the end of 2024. The report also mentions that total debt among EMDEs is at a 50-year high, and the Russia-Ukraine war has added major new costs, leaving no room for fiscal support at a time when people are still suffering from COVID-related setbacks. The report suggests that restoring progress will be particularly difficult in areas where poverty rates are highest and calls for more investment to create jobs and increase output.