World Bank predicts sluggish global growth due to higher rates and economic stress.

The World Bank has downgraded its growth forecasts for advanced economies, including the US, Japan, and Euro area countries, due to higher interest rates and the overhangs from this year's banking crisis. The bank estimates that overall global growth will decelerate to 2.1% in 2023, down from 3.1% in 2022. Emerging and developing economies are forecasted to see a slight uptick in GDP, but excluding China, growth in developing economies would be less than 3%. The reduced forecasts for growth reflect broad-based downgrades stemming from several overlapping shocks, including spillover effects from the recent banking crisis seen in the US and advanced economies.