The World Bank warned on Tuesday that weaker growth in all three of the world’s largest economies—the U.S., Europe, and China—will bring the global economy “perilously close” to a recession this year.
The World Bank, which provides loans to less developed nations for development projects, stated in an annual report that it had nearly halved its previous forecast for global growth this year from 3% to just 1.7%. If that prediction comes true, it will rank behind only the severe recessions brought on by the 2008 global financial crisis and the 2020 coronavirus pandemic as the weakest annual expansion in the last three decades.
Despite the World Bank’s forecast that the U.S. economy will grow by just 0.5% this year, the country’s businesses and consumers will likely still face challenges from the global economy in addition to high costs and higher borrowing costs. If COVID-19 keeps growing or Russia’s conflict in Ukraine worsens, the United States is still at risk of experiencing additional supply chain disruptions.
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