World Bank projects global economic slowdown due to rising interest rates.

The World Bank has warned that global economic growth has slowed sharply due to higher interest rates, chronic inflation, and continued fallout from the banking crisis. The world economy is expected to expand just 2.1% this year, after growing 3.1% in 2022. Advanced economies, including the US, are projected to cool to a growth rate of just 0.7% this year. The Federal Reserve and other global central banks are raising interest rates to cool the economy and tame runaway prices, but higher borrowing costs are hitting lower-income countries particularly hard.