World Bank: default in the United States increases the problems facing the global economic slowdown

World Bank President David Malpass said the risks of a US debt default add to the problems facing a slowing global economy, with high interest rates and high debt levels already stifling the investments needed to fuel increased production.

The financial officials of the Group of Seven (G7), who met in Japan, discussed the very great importance of raising the US debt limit and avoiding the negative repercussions of defaulting on the US government debt for the first time ever.

The rise facing an increasing number of countries. Malpass said global growth is set to fall below 2% in 2023, and said one of the big challenges is that advanced economies have taken on so much debt that it will take a lot of capital to service them leaving little investment for developing countries.