The global economy is “on a razor’s edge” and risks falling into recession this year, World Bank officials have warned as the institution unveiled its latest projections for global growth.

The Washington-based organisation expects the world economy to grow by just 1.7 per cent this year, a sharp fall from an estimated 2.9 per cent in 2022, according to the latest edition of its twice-yearly Global Economic Prospects report, published on Tuesday.

“The risks that we warned of six months ago have materialised and our worst-case scenario is now our baseline scenario,” said Ayhan Kose, the World Bank economist responsible for the report. “The world’s economy is on a razor’s edge and could easily fall into recession if financial conditions tighten.”