The World Bank is out with its latest economic forecasts and the warning of a risk of a hard landing in developing markets.
- Sees developed economies growing 3.8% vs 4.0% in June forecasts
- 2021 global GDP forecast 5.5% vs 5.7% in June
- Sees 2021 Japan GDP at 1.7% vs 2.9% in June
- Sees 2022 Japan GDP at +2.9%
- China forecast of 5.1% vs 5.4% prior
- Sees 2022 US GDP +3.7% +4.2% prior
- Sees 2023 global GDP at 3.2%
- A surge in omicron that overwhelms healthcare systems could trim another 0.7 pp from growth
"There is a pronounced slowdown underway," said Ayhan Kose, director of the World Bank's Prospects group, in an interview with Reuters. "Policy support is being withdrawn and there is a multitude of risks ahead of us."
He highlights particularly risks in developing countries who are struggling with inflation and unable to provide fiscal support.
