World bank expects global growth at 3 1 per cent

According to the World Bank, the global economy is expected to grow at a rate of 3.1% in 2023, which is a slight increase from the 2.9% growth rate projected for 2022. This forecast is based on the World Bank's January 2023 Global Economic Prospects report.

The report notes that the global economy is facing a number of challenges, including:

  1. Rising inflation: The report notes that inflation is expected to remain elevated in many countries, driven by factors such as supply chain disruptions, commodity price shocks, and monetary policy tightening.
  2. Geopolitical tensions: The report highlights the ongoing risks posed by geopolitical tensions, including trade conflicts, sanctions, and military conflicts, which could disrupt global trade and investment flows.
  3. Climate change: The report emphasizes the need for urgent action to address climate change, which is expected to have significant economic and social impacts in the coming years.

Despite these challenges, the World Bank is optimistic about the prospects for global growth in 2023, citing several positive factors, including:

  1. Stronger-than-expected economic growth in some countries: The report notes that several countries, including the United States, China, and India, have experienced stronger-than-expected economic growth in recent years, which is expected to continue in 2023.
  2. Improving global trade: The report notes that global trade has been recovering from the pandemic-induced slump, and is expected to continue growing in 2023.
  3. Investment in infrastructure and technology: The report highlights the importance of investing in infrastructure and technology to drive economic growth and improve living standards.

Overall, the World Bank's forecast for 3.1% global growth in 2023 is a cautious one, reflecting the ongoing challenges facing the global economy. However, the report also highlights the potential for stronger growth if policymakers can address the challenges posed by inflation, geopolitical tensions, and climate change.