Kathmandu. The banking crisis in the US and Europe has raised fears of a global recession. Now the World Bank has given such a warning in one of its reports.

The World Bank has said that by 2030, the pace of the world economy may be the slowest in three decades. In its report, the World Bank has said that the service sector should be used well along with promotion of productivity and labor supply, promotion of investment. The report evaluates the potential production growth rate after the Covid-19 and Russia-Ukraine.

In its report, the World Bank has expressed concern that almost all economic forces that promote development and prosperity have weakened over the past three decades. This decline is likely to reduce average global potential GDP growth between 2022–2030.

The report says that the recession we are referring to could intensify if another global financial crisis emerges, especially if the trend is not limited to developed economies. Growth is also expected to slow in developed countries. In the rest of the time, the annual growth of this country is 4 percent, if there is a global crisis, the situation may worsen.

The banking crisis in the US and Europe has shaken markets around the world. Its impact has also been seen in the Indian market. Banking shares are under pressure. Two banks in the US have been locked down and the shadow of this crisis seems to be falling on many other banks as well. After the sinking of Silicon Valley Bank and Signature Bank, Switzerland will suspect that the American banking crisis may take more banks under its grip.