The World Bank - 2023 Global Economic Prospects Report

On the occasion of the World Bank Group’s global report launch on 6th June, we are delighted to welcome Franziska Ohnsorge, lead author and Manager of the World Bank’s Prospects Group, to present the latest update and forecast of the global economy. She will be joined by Garima Vasishtha and Nikita Perevalov who co-led the report’s analysis on the global outlook.

The Global Economic Prospects is a biannual World Bank Group flagship report that examines global economic developments and prospects, with a special focus on emerging market and developing economies.

As members build their longer-term strategies and business plans, this report will provide an invaluable support in identifying the economic prospects in countries and regions they already operate in or may wish to expand into.

In addition to the traditional chapters on the global and regional economic outlooks, this edition will include analytical pieces on the financial spillover of US interest rate rises, fiscal policy changes in low-income countries, and long-term growth prospects. A short description of what you can expect:

Global growth is projected to slow significantly in the second half of this year, with weakness continuing in 2024. Inflation pressures persist, and tight monetary policy is expected to weigh substantially on activity. The possibility of more widespread bank turmoil and tighter monetary policy could result in even weaker global growth. Rising borrowing costs in advanced economies could lead to financial dislocations in the more vulnerable emerging market and developing economies (EMDEs). In low-income countries, in particular, fiscal positions are increasingly precarious. Comprehensive policy action is needed at the global and national levels to foster macroeconomic and financial stability. Among many EMDEs, and especially in low-income countries, bolstering fiscal sustainability will require generating higher revenues, making spending more efficient, and improving debt management practices. Continued international cooperation is also necessary to tackle climate change, support populations affected by crises and hunger, and provide debt relief where needed. In the longer term, reversing a projected decline in EMDE potential growth will require reforms to bolster physical and human capital and labor-supply growth.

About the Presenters:  

Franziska Ohnsorge – Manager of the Prospects Group in the Equitable Growth, Finance and Institutions (EFI) Practice Group at the World Bank. Prior to joining the World Bank, Franziska Ohnsorge worked in the Office of the Chief Economist of the European Bank for Reconstruction and Development on regional surveillance, forecasting, and financial sector policy issues. She was previously at the International Monetary Fund, covering a range of Asian, European and Central Asian economies. She has published on a variety of topics.

Garima Vasishtha – Senior Economist in the Prospects Group of the World Bank and one of the lead authors of the corporate flagship Global Economic Prospects report. She is an applied macroeconomist and conducts research on policy-relevant issues in the broad fields of international finance and open economy macroeconomics. Prior to joining the World Bank, she served as a Senior Advisor to the Executive Director for Canadian, Ireland, and the Caribbean at the IMF. Garima began her career at the Bank of Canada, where she held a range of roles in the International Department.