Central banks’ interest rates hikes will cost developing countries more than $800 billion in ‘foregone income’ in coming years, says organization
Türkiye’s economic growth forecast was revised up to 2.6% for 2023 from 2.4%, according to a United Nations Conference on Trade and Development (UNCTAD) report released Wednesday.
The intergovernmental organization said developing countries are “facing years of difficulty as the global economy slows down amid heightened financial turbulence.”
“Annual growth across large parts of the global economy will fall below the performance registered before the (coronavirus) pandemic and well below the decade of strong growth before the global financial crisis,” it said.
The organization said central banks’ interest rates hikes will cost developing countries more than $800 billion in “foregone income” in the coming years.
UNCTAD said it expects global economic growth in 2023 to fall to 2.1%, compared to the 2.2% that was projected in September, assuming the financial fallout from higher interest rates is contained to bank runs and bailouts in the first quarter.
Amid the recent US banking crisis, the organization said: “Both the banking crisis and the cost-of-living crisis have shed light on the opacity and increased concentration of market power in key industries.”