Business
World Bank warns global economy could tip into recession in 2023
The World Bank slashed its 2023 growth forecasts on Tuesday to levels teetering on the brink of recession for many countries as the impact of central bank rate hikes intensifies, Russia’s war in Ukraine continues, and the world’s major economic engines sputter.
The development lender said it expected global GDP growth of 1.7% in 2023, the slowest pace outside the 2009 and 2020 recessions since 1993. In its previous Global Economic Prospects report in June 2022, the bank had forecast 2023 global growth at 3.0%, Reuters reported.
It forecast global growth in 2024 to pick up to 2.7% — below the 2.9% estimate for 2022 — and said average growth for the 2020-2024 period would be under 2% — the slowest five-year pace since 1960.
The bank said major slowdowns in advanced economies, including sharp cuts to its forecast to 0.5% for both the United States and the euro zone, could foreshadow a new global recession less than three years after the last one.
“Given fragile economic conditions, any new adverse development — such as higher-than-expected inflation, abrupt rises in interest rates to contain it, a resurgence of the COVID-19 pandemic or escalating geopolitical tensions — could push the global economy into recession,” the bank said in a statement accompanying the report.
The bleak outlook will be especially hard on emerging market and developing economies, the World Bank said, as they struggle with heavy debt burdens, weak currencies and income growth, and slowing business investment that is now forecast at a 3.5% annual growth rate over the next two years — less than half the pace of the past two decades.
“Weakness in growth and business investment will compound the already devastating reversals in education, health, poverty and infrastructure and the increasing demands from climate change,” World Bank President David Malpass said in a statement.
China’s growth in 2022 slumped to 2.7%, its second slowest pace since the mid-1970s after 2020, as zero-COVID restrictions, property market turmoil and drought hit consumption, production and investment, the World Bank report said. It predicted a rebound to 4.3% for 2023, but that is 0.9 percentage-point below the June forecast due to the severity of COVID disruptions and weakening external demand.
The World Bank noted that some inflationary pressures started to abate as 2022 drew to a close, with lower energy and commodity prices, but warned that risks of new supply disruptions were high, and elevated core inflation may persist. This could cause central banks to respond by raising policy rates by more than currently expected, worsening the global slowdown, it added.
The bank called for increased support from the international community to help low-income countries deal with food and energy shocks, people displaced by conflicts, and a growing risk of debt crises. It said new concessional financing and grants are needed along with the leveraging of private capital and domestic resources to help boost investment in climate adaptation, human capital and health, the report said.
The report comes as the World Bank’s board this week is expected to consider a new “evolution road map” for the institution to vastly expand its lending capacity to address climate change and other global crises. The plan will guide negotiations with shareholders, led by the United States, for the biggest revamp in the bank’s business model since its creation at the end of World War Two.
Business
Afghanistan, Tajikistan seek stronger trade and investment ties
The two sides discussed increasing trade exchanges, establishing direct links between traders and investors, and organizing joint economic programs.
The heads of the chambers of commerce and industry of Afghanistan and Tajikistan have agreed to strengthen bilateral trade, promote investment and expand cooperation between the private sectors of the two countries.
Sayed Karim Hashemi, head of the Afghanistan Chamber of Commerce and Investment (ACCI), held an online meeting with Farhad Shah Rahman Alizoda, head of the Chamber of Commerce and Industry of Tajikistan, to discuss ways to expand economic ties.
The two sides discussed increasing trade exchanges, establishing direct links between traders and investors, and organizing joint economic programs.
Hashemi invited Tajik traders and investors to participate in the fifth Imam Abu Hanifa International Exhibition in Kabul.
Alizoda, meanwhile, invited an Afghan business delegation to attend a major trade and industrial exhibition in Dushanbe.
The two sides also stressed the importance of exchanging business delegations and developing long-term cooperation between the private sectors of Afghanistan and Tajikistan.
Business
Kazakhstan grain shipments to Afghanistan rise over 4-fold
Of the total, 7.2 million tons were transported for export, while 2.1 million tons were supplied to the domestic market.
Grain shipments from Kazakhstan to Afghanistan increased 4.4 times in the first eight months of the year, reaching 655,000 tons, according to Kazakhstan’s Transport Vice Minister Zhanibek Taizhanov.
Speaking at a government meeting, Taizhanov said Kazakhstan transported 9.3 million tons of grain by rail during the period, a 13% increase compared with the same period in 2025.
Of the total, 7.2 million tons were transported for export, while 2.1 million tons were supplied to the domestic market.
Taizhanov said grain shipments to Central Asia increased by 37%, while shipments to China rose by 34%. Grain exports through Russian ports also increased by 9%.
Meanwhile, combined fodder exports rose by 38% to 2.6 million tons.
Earlier, Kazakhstan’s Vice Minister of Agriculture Azat Sultanov said the country plans to commission 15 additional vegetable storage facilities by the end of 2026, with a combined capacity of 129,000 tons.
Business
Russia accuses West of double standards over deportation of Afghans
She said the process of removing Afghan refugees who were once considered partners by Western countries had accelerated.
Russia has criticized Western countries over their policies toward Afghans who left the country following the withdrawal of foreign forces in August 2021, accusing them of tightening asylum rules while increasing deportations.
Maria Zakharova, spokesperson for Russia’s Foreign Ministry, made the remarks in response to questions about the policies of the United States, Britain and Germany toward Afghan nationals.
Zakharova said Western countries had tightened rules on issuing documents and granting asylum after facing difficulties in accommodating Afghans, while simultaneously stepping up deportations.
She said the policy particularly affected former officials and military personnel of the previous Afghan government, who could face forced returns to Afghanistan.
Zakharova also referred to reports that some European Union countries had allowed diplomats of the Islamic Emirate of Afghanistan (IEA) to issue documents for Afghan nationals subject to readmission.
She said the process of removing Afghan refugees who were once considered partners by Western countries had accelerated.
Zakharova also raised concerns about the planned closure of Qatar’s Al-Sailiya camp, where more than 1,000 Afghans who worked with US forces are reportedly housed at a former US military base.
She said the United States had been unwilling to accept some of its former Afghan partners and was instead negotiating their resettlement in African countries.
Zakharova accused Western governments of adopting an inconsistent approach by criticizing IEA officials over alleged human rights violations while at the same time deporting Afghan nationals to Afghanistan.
Her comments come amid continuing debate in Western countries over the status of Afghan asylum seekers, former government officials and people who worked with foreign forces following the 2021 withdrawal.
-
Sport4 days agoAfghan bodybuilder Ali Bilal finishes runner-up at Mr Olympia for third straight year
-
Latest News4 days agoAfghanistan says 28 killed, 32 captured in Nuristan operation
-
World4 days agoTrump rejects Iranian proposal to open Hormuz and end fighting
-
Sport5 days agoAfghanistan to face India in Asian Games cricket quarter-final
-
Sport5 days agoAfghanistan Champions League: Omar Zawak Herat beat Toofan Herat 1-0
-
Latest News5 days agoKhalilzad questions Pakistan’s commitment to Afghan welfare
-
Latest News4 days agoUNDP, UN Women launch financing initiative for Afghan women entrepreneurs
-
Sport3 days agoAfghanistan vs India Asian Games quarter-final abandoned without a toss
