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World Bank warns of likely global recession

The World Bank has warned that new adverse shocks could tip the global economy into a recession. The Washington-based lender said persistent inflation and higher interest rates are among the key reasons. It also cited the impact of Russia’s invasion of Ukraine, and a decline in investment. World Bank President David Malpass said gross domestic product in emerging-market and developing economies at the end of 2024 will be about 6% below the level expected on the eve of the Covid-19 pandemic. The World Bank said the combination of slow growth, tightening financial conditions, and heavy indebtedness is likely to weaken investment and trigger corporate defaults. He added that urgent global action is needed to mitigate the risks of global recession and debt distress.


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