Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Global growth to hit three-decade low: World Bank  

Global growth to hit three-decade low: World Bank  

The global economy is set for a “lost decade” according to the World Bank as it forecasts that economic growth is set to hit a 30-year low.
A report from the organization warns average global domestic product growth will drop to 2.2 percent a year between 2022 and 2030 – down from the 3.5 percent rate that prevailed in the first decade of this century.

According to its latest forecast, the decline for developing economies will be especially steep – with growth shrinking from 6 percent a year between 2000 and 2010 to 4 percent a year up until 2030.

“A lost decade could be in the making for the global economy. 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.” said the World Bank’s Chief Economist and Senior Vice President for Development Economics Indermit Gill.

He added: “But this decline is reversible. The global economy’s speed limit can be raised—through policies that incentivize work, increase productivity, and accelerate investment.”

Analysts from the World Bank theorized that if the world embraced sustainable and growth-oriented policies, potential GDP growth could be raised by 0.7 percentage points to an annual average rate of 2.9 percent.

“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. 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,” stated the report.

Aligning monetary, fiscal, and financial frameworks is the first World Bank recommendation that could be used to moderate the fluctuations of business cycles, therefore instilling investor confidence.

The report also suggested ramping up investments, cutting trade costs and increasing labor force participation as ways to enhance potential growth in the national economies.

Additionally, capitalizing on the services sector could become the new engine of economic growth.

The World Bank concluded: “International economic integration has helped to drive global prosperity for more than two decades since 1990, but it has faltered. Restoring it is essential to catalyze trade, accelerate climate action, and mobilize the investments needed to achieve the Sustainable Development Goals.”
Newsletter

Related Articles

Budapest Post
Close
0:00
0:00
Olaf Scholz Assures: No Cuts to German Welfare State Amid Budget Crisis
Greece and Turkey Agree to Reboot Relations After Landmark Talks in Athens
Greece and Turkey Agree to Reboot Relations After Landmark Talks in Athens
No. 10 Advised: Rwanda Plan Has '50% at Best' Chance of Success Before Election
Significant Shift: UK Voters Express Desire for Closer Relationship with EU Since Brexit
Sadiq Khan Appeals to Progressives for Support Amidst Concerns Over New Voting System
Sunak Faces Further Scrutiny in Covid Inquiry as Pranksters Claim Access to His Former Phone Number
NHS Issues Apology for Sending Incorrect Body for Family Cremation
Labour Intensifies Condemnation of Gaza Violence
Senior doctors' significant pay increase creates tension within NHS
Two distinct investigations into the Covid pandemic are underway in the UK, each adopting a contrasting approach
Stephen Fry Returns to Work Just Three Months After Stage Fall
Laura Kuenssberg Reports: Tory Party Divisions and Disputes Heighten Pressure on Sunak
UK's Generation X Skeptical About Retirement Prospects
EU Fiscal Agreement Sparks Disagreement Between France and Germany Over Investment Expenditure
EU Fiscal Agreement Sparks Disagreement Between France and Germany Over Investment Expenditure
UK Parliamentary Committee Criticizes Lackluster Post-Brexit Financial Reforms
UK Parliamentary Committee Criticizes Lackluster Post-Brexit Financial Reforms
US, UK, Canada Impose Sanctions on Dozens on Human Rights Anniversary The US, UK, and Canada have collectively imposed sanctions on dozens of individuals and entities for human rights abuses to commemorate the 75th anniversary of the Universal Declaration of Human Rights
US, UK, Canada Impose Sanctions on Dozens on Human Rights Anniversary The US, UK, and Canada have collectively imposed sanctions on dozens of individuals and entities for human rights abuses to commemorate the 75th anniversary of the Universal Declaration of Human Rights
"New Beginnings: Greece and Turkey Agree to Repair Relations
"New Beginnings: Greece and Turkey Agree to Repair Relations
Finland's Supreme Court Prevents Extradition of Russian Terrorism Suspect to Ukraine
Finland's Supreme Court Prevents Extradition of Russian Terrorism Suspect to Ukraine
UK Proposes Streamlined Financial Advice to Reduce Costs for Consumers
UK's Labour Party Conducts Review of Financial Services to Boost City's Growth Potential
London City Hall Condemns Blast Targeting Clean Air Zone Camera
Controversy Surrounds President Macron's Hanukkah Candle Lighting Ceremony at Elysée Palace
Venezuela Steps Up Claim on Guyana's Essequibo Region
Spain's First AI Model Earns Up to $10,000 Monthly
German Cabinet Works to Address 'No-Debt' Crisis After Court Outlaws Budget
Former President Restricted from Leaving Ukraine Amid Alleged Plan to Meet Hungary's Viktor Orban
Spain soccer kiss: Furore grows as prosecutors launch probe against federation chief
Paper straws found to contain long-lasting and potentially toxic chemicals - study
FTX's Bankman-Fried headed for jail after judge revokes bail
Blackrock gets half a trillion dollar deal to rebuild Ukraine
Steve Jobs' Son Launches Venture Capital Firm With $200 Million For Cancer Treatments
Greek PM offers tourists affected by wildfires a free stay in Rhodes next year.
Israel: Unprecedented Civil Disobedience Looms as IDF Reservists Protest Judiciary Reform
Google reshuffles Assistant unit, lays off some staffers, to 'supercharge' products with A.I.
End of Viagra? FDA approved a gel against erectile dysfunction
UK sanctions Russians judges over dual British national Kara-Murza's trial
US restricts visa-free travel for Hungarian passport holders because of security concerns
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Political leader from South Africa, Julius Malema, led violent racist chants at a massive rally on Saturday
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
How “peacekeepers” at the UN spend our American tax dollars.
Singapore Carries Out First Execution of a Woman in Two Decades Amid Capital Punishment Debate
Spanish Citizenship Granted to Iranian chess player who removed hijab
×