The World Bank says a global recession is looming as central banks simultaneously hike interest rates to combat persistent inflation.
A new study by the bank says the world's three largest economies; the United States, China, and the Euro Area - have been slowing sharply, and even a moderate hit to the global economy over the next year could tip it into recession.
The World Bank says the global economy was now in its steepest slowdown following a post-recession recovery since 1970.
Consumer confidence has already dropped more sharply than in the lead up to previous global recessions.
The bank says unless supply disruptions and labour-market pressures subside, the global core inflation rate, excluding energy, could stay at about 5 per cent in 2023, nearly double the five-year average before the pandemic.