Hedge funds are betting against short-dated Treasuries as the Federal Reserve’s tightening cycle is far from over… World Bank: Global economic growth expected to slow to 2008 levels

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World Bank: Global Economic Growth Expected to Slow to 2008 Levels

Most people in the mainstream concede that the economy is heading for a recession, but the consensus seems to be that downturn will be short and shallow. Projections by the World Bank undercut that optimism.

According to the World Bank, global growth in 2023 will slow to the lowest level since the 2008 financial crisis. In other words, the World Bank is predicting the beginning of Great Recession 2.0.

You might recall that the Great Recession was neither short nor shallow. In fact, World Bank Group chief economist and senior vice president Indermit Gill said, “The world economy is in a precarious position.”

According to the World Bank’s new Global Economic Prospects report, global growth is projected to decelerate to 2.1% this year, falling from 3.1% in 2022. The bank forecasts a significant slowdown during the last half of this year.

That would match the global growth rate during the 2008 financial crisis. According to the World Bank, higher interest rates, inflation, and more restrictive credit conditions will drive the economic downturn.


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