The World Bank's latest report warns that the "golden age" of rapid global economic growth is coming to an end, and that it may face a "lost decade".
The golden age of growth is coming to an end
[Compilation of Lu Yongshan/Comprehensive Report] The World Bank released the latest report warning that risks such as the Wuhan pneumonia epidemic and the Ukrainian-Russian war have reduced the long-term growth potential of the global economy. The "golden age" of rapid economic development in the past seems to be coming to an end. Facing a "lost decade", which means that the world will become poorer and lack more resources to deal with the impact of various challenges such as climate change.
The World Bank pointed out in the report "Downward Long-term Growth Prospects: Trends, Expectations, and Policies" that the global economy is facing multiple crises, including the pandemic that has severely damaged the economy and strained the public health system; Russia's invasion of Ukraine has disrupted supply chains and hurt International trade; the global economic slowdown may prolong the threat, which coincides with a series of banking crises, putting the global financial system under pressure in the near future.
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Economic growth set to plummet to 30-year low
The World Bank predicts that between 2022 and 2030, the average annual global economic growth rate will drop to 2.2, the lowest in 30 years.
Two percent, compared to the three in the first decade of this century.
Five per cent falls by about one-third; the decline in economic growth in developing countries is even more pronounced, from an average of six per cent in the first decade of this century to possibly falling to four per cent this decade.
If the current banking turmoil turns into a financial crisis or recession, global growth forecasts could be weaker due to the associated job and investment losses, the World Bank said.
Indermit Gill, Chief Economist of the World Bank, said: "The global economy may be brewing a lost decade, but the unique challenges of this era, such as poverty, income inequality and climate change, which are difficult to eradicate, are still intensifying, and the potential growth A sustained decline will affect the world's ability to meet these challenges, but the decline is not irreversible."
The report said that if countries adopt sustainable, growth-oriented policies, the potential economic growth rate may increase ○.
Seven percent to two.
Nine percent, countries therefore need to increase productivity, increase labor supply, expand investment and trade, and fully tap the potential of the service industry.
The World Bank report also recommends that international monetary and fiscal policies should cooperate more closely, and that leaders must find new ways to reduce trade costs and increase labor force participation.
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