The World Bank has revised its global growth outlook for 2023 to 2 percent from 1.7 percent in January. Today, as the annual spring meeting of the International Monetary Fund (IMF) and the World Bank (WB) begins, WB President David Malpasse told Reuters. But he warned that a slowdown from stronger growth in 2022 would increase developing countries’ debt problems.
China is recovering
Malpass said at a press conference that the upward revision of the outlook was mainly due to the improved outlook for China’s recovery after the end of the anti-retroviral measures. The WB now estimates China’s growth at 5.1 percent, while in its January global economic outlook it expected growth of only 4.3 percent this year. According to the head of the World Bank, advanced economies, including the United States, are doing slightly better this year than the World Bank expected.
Watch out for oil
But the outgoing World Bank chief warned that turmoil in the banking sector and higher oil prices could put downward pressure on growth prospects again later this year. The problems in the banking sector will persist for some time, he said, and banks are likely to cut back on lending.
According to the published agenda, the main topics of the spring meeting will include, for example, the fight against inflation, the growth of the world economy and its fragmentation. However, there will also be debates on artificial intelligence and the future of cryptocurrencies. The meeting will be attended by finance ministers, central bankers as well as finance and development experts from around the world. The session ends on 16 April.
Source: CTK
