The World Bank , President David Malpass, said the global...

The World Bank , President David Malpass, said the global economy was in the steepest slowdown following a post-recession recovery since 1970, and consumer confidence had dropped more quickly than in the lead up to previous global recessions.

However, it noted that rate rises by central banks were likely to continue, but that may not be enough to bring inflation down.

He said the global core inflation rate could stay at around 5 per cent in 2023, nearly double the five-year average before the pandemic.

The bank said central banks may need to raise interest rates by an extra 2 percentage points, on top of the average 2 percentage point increase seen in 2021.

However, that could cause a global reduction in GDP by 0.5% thus causing a global recession.

Dated 16/09/2022