High inflation, rising interest rates and the Russian war of aggression against Ukraine are slowing down global economic growth drastically and in the long term.

The World Bank lowered its global growth forecast for this year to 1.7 percent on Tuesday and warned of a possible recession. “I am deeply concerned that the slowdown may continue,” World Bank chief David Malpass said on Tuesday. In practically all regions of the world, per capita income will grow more slowly than in the period before the corona pandemic, according to the report “Global Economic Prospects”.

The development will hit developing countries particularly hard, according to Malpass. “There is a devastating disconnect between the regions that need large amounts of new investment to support growing populations and actual investment flows,” he warned. Last June, the World Bank was still assuming global economic growth of 3 percent for 2023 – this is now a decline of 1.3 percentage points. Further negative shocks could plunge the global economy into another recession, it said.