“A lost decade could be in the making for the global economy,” said Indermit Gill, the World Bank’s Chief Economist and Senior Vice President for Development Economics. These declines would be much steeper in the event of a global financial crisis or a recession. For developing economies, the decline will be equally steep: from 6% a year between 20 to 4% a year over the remainder of this decade. As a result, between 20 average global potential GDP growth is expected to decline by roughly a third from the rate that prevailed in the first decade of this century-to 2.2% a year. The report documents a worrisome trend: nearly all the economic forces that powered progress and prosperity over the last three decades are fading. These rates can be considered the global economy’s “speed limit.” The report, Falling Long-Term Growth Prospects: Trends, Expectations, and Policies, offers the first comprehensive assessment of long-term potential output growth rates in the aftermath of the COVID-19 pandemic and the Russian invasion of Ukraine. An ambitious policy push is needed to boost productivity and the labor supply, ramp up investment and trade, and harness the potential of the services sector, a new World Bank report shows. The global economy’s “speed limit”-the maximum long-term rate at which it can grow without sparking inflation-is set to slump to a three-decade low by 2030. Systemic Banking Crises, Recessions Have Lasting Effects on Growth, Development
Cover Image Attribute: Gerd Altmann from Pixabay
0 kommentar(er)
