In a worst-case scenario, global growth could slow further to just 2.1%, one of the weakest growth rates this century, excluding the periods of the COVID-19 pandemic and the 2008 global financial crisis.
Shantanu Mukherjee, Director of Economic Analysis at the UN Department of Economic and Social Affairs, said that were not close to a recession, but life could get harder for billions of people, and some countries may see their economies contract.
The downgrade in the forecast was triggered largely by the blockade of the Strait of Hormuz, a vital shipping route for oil, natural gas, fertilizers, and other petroleum products. Global inflation is projected to rise to 3.9% this year, 0.8 percentage points higher than the forecast at the beginning of the year.
