World Bank lowers 2023 global growth forecast to 1.7% from 3% in June
|The World Bank announced on Tuesday that it expects the global economy to grow by 1.7% in 2023, down sharply from 3% in June's forecast, as reported by Reuters.
Key takeaways
"World Bank forecasts US 2023 GDP growth at 0.5% vs 2.2% in June forecast; weakest non-recession performance since 1970."
"Growth outlook dimmed by effects of monetary tightening, slowdowns in US, Eurozone, China and Ukraine war spillovers."
"World Bank sees Eurozone GDP flat in 2023 vs 1.9% growth in June forecast due to soaring energy costs, rising borrowing costs."
"Investment in emerging market and developing economies projected to grow at 3.5% pace through 2024, half the pace of previous two decades."
"China's 2022 growth slowed to 2.7% due to COVID lockdowns but will recover to 4.3% for 2023."
Market reaction
This headline doesn't seem to be having a noticeable impact on risk sentiment. As of writing, the S&P 500 Index was virtually unchanged on the day at 3,890.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.