The World Bank has almost halved its forecast for global economic growth due to the war in Ukraine

2023/01/465-1673508495.jpg
Read: 1391     11:00     12 ЯНВАРЬ 2023    

The World Bank lowered its forecasts for global economic growth from 3.0% (according to forecasts in June 2022) to 1.7%.

This is the lowest figure in the last 30 years, except for the crisis years of 2009 and 2020, — writes Deutsche Welle.

It is noted that as a result of the war in Ukraine and the increase in interest rates by national Central Banks, many countries were on the verge of recession. Thus, the growth rates of the economies of industrialized countries will noticeably decrease, experts of the organization believe.

In particular, for the United States, as well as for the eurozone countries, growth rates will be only 0.5%, according to World Bank analysts in the Global Economic Prospects report.

A separate World Bank report on Georgia was made in December.

Then World Bank called Georgia one of the fastest growing economies in Europe and Central Asia. However, he warned that "further success in the next decade is not guaranteed" and "Georgia is in an unclear global environment that is changing rapidly".

A new World Bank report notes that Georgia's economy grew more than expected after Russia's invasion of Ukraine — due to the recovery of domestic demand after the pandemic, the revival of tourism and increased remittances from Russia.

According to the report, economic growth in Georgia is expected to slow from 10 to 4% in 2023 and "basically reflects the underlying effect caused by high growth in 2022." In the medium term, growth is expected to stabilize within a potential 5 percent.

"A positive prospect can be considered the inflow of cash flows for a longer period than expected, and Georgia will benefit from the reconfiguration of the transport corridor as a result of the creation of a new direction of trade", the report says.





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The World Bank has almost halved its forecast for global economic growth due to the war in Ukraine

2023/01/465-1673508495.jpg
Read: 1392     11:00     12 ЯНВАРЬ 2023    

The World Bank lowered its forecasts for global economic growth from 3.0% (according to forecasts in June 2022) to 1.7%.

This is the lowest figure in the last 30 years, except for the crisis years of 2009 and 2020, — writes Deutsche Welle.

It is noted that as a result of the war in Ukraine and the increase in interest rates by national Central Banks, many countries were on the verge of recession. Thus, the growth rates of the economies of industrialized countries will noticeably decrease, experts of the organization believe.

In particular, for the United States, as well as for the eurozone countries, growth rates will be only 0.5%, according to World Bank analysts in the Global Economic Prospects report.

A separate World Bank report on Georgia was made in December.

Then World Bank called Georgia one of the fastest growing economies in Europe and Central Asia. However, he warned that "further success in the next decade is not guaranteed" and "Georgia is in an unclear global environment that is changing rapidly".

A new World Bank report notes that Georgia's economy grew more than expected after Russia's invasion of Ukraine — due to the recovery of domestic demand after the pandemic, the revival of tourism and increased remittances from Russia.

According to the report, economic growth in Georgia is expected to slow from 10 to 4% in 2023 and "basically reflects the underlying effect caused by high growth in 2022." In the medium term, growth is expected to stabilize within a potential 5 percent.

"A positive prospect can be considered the inflow of cash flows for a longer period than expected, and Georgia will benefit from the reconfiguration of the transport corridor as a result of the creation of a new direction of trade", the report says.





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