The World Bank downgraded the forecast for the global economy for 23y, expects Russia’s GDP to fall by 3.3%

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This material was produced in Russia, where the law restricts coverage of the special military operation of the Russian Federation in Ukraine.

MOSCOW, Jan 10 (Reuters) – The World Bank expects a slowdown in global economic growth in 2023 due to Moscow’s ongoing “special operation” in Ukraine, rising central bank rates and stalling main economic drivers, expects Russia’s GDP to fall by 3.3% in next year.

The global economy will grow by 1.7% in 2023, compared with 2.9% growth last year, the bank said in a report released Tuesday. Growth of 2.7% is projected in 2024.

“Global growth is expected to slow sharply to 1.7% in 2023. This will be the third worst performance in almost three decades, excluding recessions caused by the pandemic and the global financial crisis,” the report says.

Previously, the World Bank predicted global economic growth of 3% in 2023.

The downgrade reflects a simultaneous tightening of policies to contain very high inflation, deteriorating financial conditions and continued restrictions related to Russia’s special military operation in Ukraine, the World Bank said.

The Russian economy, on which the West has imposed unprecedented sanctions, will contract by 3.3% in 2023, according to the World Bank, after falling by 3.5% in 2022. In 2024, the country’s GDP may return to growth by 1.6%, follows from the report.

China’s economic growth slowed to 2.7% in 2022, the second-worst since the mid-1970s after 2020, China’s GDP could grow by 4.3% next year, still below the bank’s previous forecast due to for disruptions related to COVID-19 and weakening external demand. (Moscow Bureau)

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