Washington
The World Bank warns that the world economy is about to face a terrible crisis. Explaining the reason, World Bank President David Malpas says that the impact of the coronavirus epidemic is increasing day by day, especially in poor countries. The World Bank's latest forecast says global growth will slow this year compared to last year; The World Bank estimates that this will be 4.1 percent this year, up from 5.5 percent in 2021.
As a result, it is having an impact on reducing the risk of the virus in the country, as well as reversing the trend of cutting off government support and reducing demand. According to David Malpas, his biggest concern is that it is increasing inequality between different states in the world. As growth slows, the world will fall into a process where inequality will increase.
Under these circumstances, the poorest countries will be economically disrupted in the fight against inflation. By 2023, strong economies such as the United States, various European countries and Japan will be able to recover from the epidemic, the World Bank believes.
However, developing countries, ie poor countries, are far from overcoming this crisis, but will lag far behind. According to the agency, the economic growth of these countries could be reduced by up to four percent compared to the previous Covid situation. The various programs of the rich countries are increasing the inflation in the poor countries, due to which the inequality in the global economy is also increasing, Malpas thinks.
However, many countries, including the United States, are now considering raising interest rates to curb inflation. It also said global inflation was the highest this year since 2006. Lenders, banks have warned that risks are being created by disrupting commodity supply and reducing incentives. Banks' growth forecast for June is expected to increase further by mid-2021. This is due to the increase in delta and omikron type infections of coronavirus.
It is expected that this growth rate will slow down further this year and global growth is expected to be 3.2 percent in 2023. "The reality is that covid and shutdown are still causing huge losses, and this is especially true for poor countries," said Malpas. It could be a scary picture." The World Bank says slowing growth in China, the United States and the European Union has slowed global growth.
Last year, China's growth slowed from eight percent to 5.1 percent. In the United States, the growth rate was 5.6 percent in 2021, but this year it could be 3.7 percent. On the other hand, the growth rate of the Eurozone could fall from 5.2 percent to 4.2 percent this year, according to the World Bank. India, plagued by epidemics, is in a good position, albeit somewhat in the face of slowing growth. The World Bank has hinted that the country could achieve 8.3 to 8.7 percent growth this year.
Agency input
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