Young people today will not enjoy the same growth in living standards as their parents without a growth “miracle”, the World Bank has warned. 

Franziska Ohnsorge, its lead economist, said urgent action was needed to reverse a slowdown in traditional factors that improve living standards, including investment and improvements in education standards and efficiency of companies. 

It came as the World Bank warned that the global economy will slow sharply this year, adding that many developing economies were in danger of falling into a financial crisis as higher interest rates hammer the world.

Global growth is projected to ease to 2.1pc in 2023, down from 3.1pc in 2022. 

While this represents an overall upgrade compared with its previous forecast in January, Ms Ohnsorge said projections for 70pc of emerging economies and “nearly all advanced economies” had been downgraded.

Its forecast for growth in 2024 was also cut by 0.3 percentage points to 2.4pc.

The World Bank also warned that central banks around the world will struggle to hit their inflation targets until at least 2025, adding that in the future it will be “harder to bring inflation down” as economies have less room to grow before they start to overheat.