World Bank forecasts pronounced downturn

The World Bank's new growth forecast for the global economy looks bleak.

The global economy is in a pronounced downturn, writes the World Bank in its new Global Economic Prospect Report.

Ayhan Kose, chief economist at the World Bank, explains: "Covid is still here. We are experiencing the omicron wave. Debt is high, inflation is rising. We have climate-related challenges. Little policy space in emerging markets. These risks increase the possibility a hard landing."

Global inflation is at its highest rate since 2008. At the same time, global debt due to the pandemic is higher than it was 50 years ago, according to the World Bank report.

After an upswing in 2021, global growth will fall to 4.1 percent in the current year and only amount to 3.2 percent in 2023.