The World Bank (WB) has reduced its 2022 global gross domestic product growth forecast from 4.3% to 4.1%. The global outlook is troubled by what WB Group President David Malpass termed “exceptional uncertainty”. In its semi-annual Global Economic Prospects report, the bank cited downside risks which include renewed Covid-19 outbreaks, the possibility of de-anchored inflation expectations, and financial stress in a context of record-high debt levels. It said that in emerging markets with limited policy space to provide support, the risks heighten the chances of a hard landing for their economies. The bank added that by 2023, annual output is expected to remain below the pre-pandemic trend in all regions with emerging-market and developing economies, while in advanced economies the gap is estimated to close.
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