According to the World Bank’s Global Economic Prospects report, global growth is projected to slow from 3.1% in 2022 to 2.1% in 2023, with emerging market and developing economies (EMDEs) facing financial risks due to elevated global interest rates.
The report indicates that one out of every four EMDEs has effectively lost access to international bond markets, and growth projections for these economies for 2023 are less than half those from a year ago, making them highly vulnerable to additional shocks. The report also notes that low-income countries will see per capita incomes in 2024 still below 2019 levels.
Key Takeaways
- Global growth is projected to slow to 2.1% in 2023, with most EMDEs set to see limited harm from recent banking stress in advanced economies but now sailing in dangerous waters.
- The overlapping shocks of the pandemic, the Russian invasion of Ukraine, and the sharp…
