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

0:00
0:00
Close
Russia's Call for a BRICS Financial System Alternative
Only A Third Of Europe's Surface Waters Are Healthy
Taiwan Records Unprecedented Chinese Military Activity Post-Drills
Israel Vows to Limit Retaliatory Strike on Iran to Military Facilities
British Influencer Dies Climbing Spain's Tallest Bridge
Four Killed in Tesla Electric Car Fire in France
Man with Weapons Arrested Near Trump Rally in California
China Conducts Military Drills Around Taiwan: A Strategic Warning
US Deploys THAAD Missile Defense System to Israel
DNA Evidence Suggests Christopher Columbus Was a Sephardic Jew
NASA Launches Europa Clipper Mission to Explore Jupiter's Moon
Tesla's Robotaxi Design Strikes Controversy
Poll Shows Trump Favored Over Harris in Handling Wars
Boeing to Reduce Workforce by 10% Amid Financial Strain
These robotic arms deliver a massage that can be customized to the user's needs
Prospect of UK Rejoining the EU Discussed by Peter Mandelson
Historic Floods Reshape Sahara Desert Landscape
Brazilian Man Arrested for Decades-long Abuse and Imprisonment of Family
EU Plans Sanctions on Iran for Missile Transfers to Russia
Nihon Hidankyo Wins Nobel Peace Prize
Donald Trump Amplifies Anti-Migrant Sentiments in Colorado Speech
Ireland Urges Israel to Cease Fire on UN Peacekeepers in Lebanon
Israel Marks Yom Kippur Under Multi-Front Conflict for First Time Since 1973
Elon Musk Unveils Tesla’s Optimus: The Most Ambitious Product Ever
China Faces Potential Overcapacity in AI Computing Power
China's EV Price War Reaches New Heights
Huawei Surpasses Apple in China Smartphone Sales for First Time in Nearly Four Years
William and Kate's First Public Appearance Post-Chemotherapy
Trump Proposes Tariffs on Chinese Cars to Protect US Auto Industry
This is what a 15 foot hurricane storm surge looks like. It's terrifying
Heads of 9 post-Soviet states gather in Moscow, issue joint statement to the world
The Impact of Online Culture on Young Women: Survey Insights
Hypersonic Jet to Revolutionize Air Travel
Russian Medic Arrested for Alleged Satanism and Promoting LGBTQ Rights
RT has converted key archive speeches delivered by Putin into spoken English using the help of AI
Elon Musk Joins Trump on Stage, Celebrates Free Speech and Slams Biden-Harris Administration
Madonna's Brother Passes Away at the Age of 63
Bill Gates: "6% of global emissions are cows... You can either fix the cows to stop them farting, or you can make beef without the cow."
Facilitated Communication: Miracle Tool or Manipulative Method?
Ukraine to Present 'Victory Plan' at Upcoming Meeting in Germany
Norwegian Police Conclude 'Spy Whale' Hvaldimir's Death Due to Infection
Dominica Sells Citizenship to Boost Climate Resilience
EU Car Industry Faces Severe Downturn
EU Imposes Tariffs on Chinese Electric Vehicles
Spanish F-18 Fighter Jet Crash Claims Pilot's Life
US Army Tests Armed Robot Dogs in the Middle East
Israeli Family Adopts Niece After Hamas Attack
French Court Allows Public Viewing of Video Evidence in Mass Rape Trial
The rush for citizenship ahead of the elections is gaining momentum
In China, they use drones to feed people, not to kill people. This is an example of drone delivery in China.
×