The World Bank has cut projections for global growth in 2023 to just 1.7%, down from 3% predicted in January and June last year.

In the first forecast published by a major institution this year, the World Bank predicted 2023 would be the third weakest year for global growth in three decades, beating out only the pandemic and global financial crisis.

Advanced economies are set to grow just 0.5% this year, compared to 2.5% in 2022, while emerging market and developing economies are predicted to grow 3.4%, the same level of growth as last year.

The eurozone is forecast to do particularly badly, experiencing 0% growth throughout the year, compared to an estimated 3.3% expansion in 2022. The World Bank had predicted that the eurozone would grow 1.9% in 2023 in its forecasts last year.

Meanwhile, the US will see just 0.5% growth, while Japan is expected to reach 1% growth throughout the year.

Chinese economic prospects are actually one of the few that are set to improve this year, returning from 2.7% GDP growth in 2022 to 4.3%.

Russia will continue to see falling GDP, dropping 3.3% in 2023 compared to 3.5% last year

The World Bank also released its forecast of commodity prices, which predicts the price of oil will drop from $100 per barrel in 2022 to $88. The institution's overall energy price index is expected to fall from 151.7 to 130.5.

"Any additional adverse shocks could push the global economy into recession," warned the forecast.

"Small states are especially vulnerable to such shocks because of their reliance on external trade and financing, limited diversification, elevated debt, and susceptibility to natural disasters.

"Immediate policy action is needed to bolster growth and investment, including redirecting existing spending, such as agricultural and fuel subsidies."