(Image source from: Twitter.com/WorldBank)

World Bank President David Malpass revealed that the global economy is very close to a recession as the inflation is getting elevated and with the growing up interest rates and the debt burden. He said this at a press conference during the IMF and World Bank annual meetings that took place yesterday. He said "We lowered our 2023 growth forecast to 1.9 percent from 3 percent for the growth of the global economy. But it is close to a recession. The major problems are the rising interest rates, cutt of capital flow and the inflation issue. A recession across the globe may happen very soon under certain circumstances". World Bank predicts that the recession will take place next year with a growth forecast of just 0.5 percent.

The world's population growth is estimated at 1.1 percent per year. The coronavirus pandemic turned out to be the biggest setback for the world as the global poverty increased badly. 70 million people across the world are in extreme poverty in 2020. The war between Russia and Ukraine made the situation worse. As per the report from the Poverty and Shared Prosperity, the median income of the globe declined by 4 percent in 2020. This is the first biggest decline since 1990. The World Bank is concerned about the concentration of the capital in the world. For now, the entire world is chasing a challenging environment from the economies and this is a danger for the developing nations.