The World Bank has cut its forecast for global economic growth this year to 2.1%, down from 3.1% in 2022, and warned of rising financial risks.

Developed economies will bear the brunt of the slowdown, with growth dropping from 2.6% to 0.7%, and remaining weak in 2024. China’s recovery will help cushion the impact of the global slowdown on low- and middle-income countries, which will grow by 3.9% this year, slightly slower than the 4.8% growth in 2022. Following the trend, Mongolia will see its growth pick up in the coming years, boosted by mining exports to China.

The World Bank cautioned that the world faces financial instability from a series of bank failures and sovereign debt problems. It urged countries to reduce their debt burdens and mitigate risks.