Overlapping crises could lead to a sharp slowdown, the institution warns
Average potential global economic growth will slump to a three-decade low of 2.2% per year through 2030, the World Bank warned on Monday, citing the fallout from the Covid-19 pandemic, the conflict in Ukraine, and the ongoing risks to the financial sector in the US and EU.
According to the report, all these factors are weighing on the global economy, which the bank expects to expand by just 1.7% this year.
“A lost decade could be in the making for the global economy,” the World Bank’s chief economist, Indermit Gill, said. “The ongoing decline in potential growth has serious implications for the world’s ability to tackle the expanding array of challenges unique to our times – stubborn poverty, diverging incomes, and climate change.”
World Bank predicts a lost decade ahead
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