June 10, 2023

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The World Bank expects a “lost decade” for the global economy | Economy

Nearly all of the global economic drivers that drove progress and prosperity over the past three decades are vanishing. This came in a World Bank report that talks about a “worrying trend”. “There could be a lost decade ahead for the global economy,” he said.

The next ten years do not look rosy from an economic point of view. Average global economic growth is expected to decline by about a third between now and 2030, compared to the pace of the first decade of this century. This equates to a drop of more than 2% in growth annually.

For emerging economies, growth will decline from 6% annually between 2000 and 2010, to 4% annually for the rest of this decade. The World Bank predicts that “these declines will be much stronger in the event of a global financial crisis or recession.”

“The need for policies that generate growth”

According to the institute, declining growth has “dire consequences” for addressing problems such as poverty, income inequality and climate change. This decline appears to be reversible, though it requires policies that “stimulate work, increase productivity, and accelerate investment.”

According to the World Bank, “We owe it to future generations to craft policies that can deliver strong, sustainable, and inclusive growth.” Under the current policy, the organization estimates that the maximum long-term growth rate of the global economy – without fueling inflation – will fall to the sharpest decline in three decades by 2030.

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