Global Economic Prospects Report by World Bank

January 12, 2023

Flagship report (issued twice a year) examines global economic developments and prospects, with a special focus on emerging markets and developing economies (EMDEs).
Highlights
- Global GDP Growth: 1.7% in 2023 -third-weakest pace since 1993, overshadowed only by 2009 and 2020 global recessions.
  - India is expected to grow at 6.6% in 2023.
- Reasons for slowdown: Elevated Inflation, Higher interest rates, reduced investment and disruptions caused by Russia-Ukraine war.
- Any additional adverse shocks could push the global economy into recession.
- Recession is a significant, pervasive, and persistent decline in economic activity -at least for two consecutive quarters of negative GDP for most analysis.
- EMDEs are facing a multi-year period of slow growth driven by heavy debt burdens and weak investment.
- This may threaten progress on broader development and climate goals in EMDEs.
- Small states, countries with 1.5 million people or fewer – are more vulnerable because of their reliance on external trade and financing, limited diversification, elevated debt, and susceptibility to natural disaster.
- Steps needed for EMDEs include more investment to create jobs and increase output, greater debt transparency, stronger cooperation to increase cross-border trade etc.