World Bank President Forecasts Global Economy Unlikely to See Strong Recovery in 2023-2024
16:54 GMT 22.01.2023 (Updated: 17:59 GMT 22.01.2023)
MOSCOW (Sputnik) - Global economy is likely to enter a period of slow growth in 2023-2024, caused by persistent inflation and moderate investment, President of the World Bank, David Malpass, said on Sunday.
"I think, it's a long-lasting slowdown… And that has to do with the persistence of inflation, the shortage of new investment that is taking place right now, so as you look one year ahead and two years ahead, it is hard to see that there will be a strong recovery… It looks like this period of slow growth for the world may last into 2023-24, and that's a concern," Malpass told British broadcaster.
2 January, 14:58 GMT
The official also recommended governments to adjust their spending to make it more efficient and consider providing "time-bound and targeted," rather than open-ended, subsidies to help cope with the inflation and energy prices.
Western countries have been facing a massive energy crisis and rising inflation as part of the post-pandemic global economic recession. The situation deteriorated further due to the Ukraine crisis, as hostilities and Western sanctions against Moscow led to disruptions in supply chains and resulted in a further spike in energy prices worldwide.