The World Bank said that the global economy is in a "precarious state" and forecasted slow growth this year and going forward. Rising interest rates are expected to slow consumer spending and business investments, leading to threats to the stability of financial systems. The World Bank released its latest Global Economic Prospects report and projected that global growth would slow to 2.1% this year, down from 3.1% in 2022. - 2024's growth rate is set at 2.4% as of now, which is lower than it was projected to be in January this year.
- 65% of countries are expected to experience slower growth this year than last. Low-income countries relying on borrowed money are adding to the issues across the globe.
- 14 of 28 low-income countries are in debt distress or at a high risk of debt distress, according to the World Bank.
- Rising borrowing costs in rich countries, like the U.S., added to the stress on the global economy.
- The COVID-19 pandemic and Russia's war with Ukraine are seen as complementing factors to the interest rates as to why growth is slowing.
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