The World Bank has revised its global economic growth rate downward to 1.7%, 1.3 points lower than the previous forecast.
It points out that the global economy is decelerating rapidly due to record inflation and unusual interest rate hikes, and that there is a danger of falling into a recession if the situation worsens.
The World Bank released its latest global economic outlook on Thursday.
According to this, the growth rate for this year was 1.7%, which was revised downward by 1.3 points from the previous forecast in June last year.
By country and region, the US is expected to drop 1.9 points to 0.5%, while the Eurozone is expected to drop 1.9 points to 0%.
In addition, China is expected to decline by 0.9 points to 4.3%, and Japan is expected to be reduced by 0.3 points to 1%, as the impact of the new coronavirus continues.
The World Bank has pointed out that there is a risk of a recession if the situation worsens further, such as inflation exceeding expectations and interest rate hikes in such a fragile economic situation.
He also warned that emerging and developing countries are facing an increasingly serious crisis due to increased government debt and capital outflows due to interest rate hikes in developed countries.