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The World Bank Tuesday warned that global growth is "perilously close to" recession.
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It lowered its 2023 economic forecast due to high inflation, rising interest rates, and Russia's invasion of Ukraine.
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Economists warn of a slump as countries struggle to pay rising costs.
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Central banks have raised interest rates to cool down demand, worsening financial conditions.
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According to the latest Global Economic Prospects report by the World Bank, the latest forecast predicts a "sharp and long-lasting slowdown", with growth at 1.7% this fiscal year.
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This is roughly half of the rate it had predicted in June.
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This rate is one of the lowest rates in almost three decades.
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It's only surpassed by the 2020 pandemic-induced decline and the 2009 global financial crisis.