World Bank cuts 2023 global growth forecast to 1.7% amid rate hikes

Global growth will slow sharply to 1.7 percent in 2023, the third weakest pace of expansion in nearly three decades and 1.3 percentage points lower than the earlier forecast, the World Bank said Tuesday, as tightening monetary policy to tackle inflation and Russia’s war on Ukraine dampens prospects.

With the United States, the euro area and China all undergoing “a period of pronounced weakness,” the Washington-based institution also said further negative shocks, including higher inflation, abrupt rises in interest rates to contain it and a resurgence of the COVID-19 pandemic, could push the gl...