Tuesday, March 28, 2023 – 1:26 AM
Washington, March 28 / WAM / The World Bank expects the maximum growth rate of the global economy to drop to its lowest level in three decades by 2030.
The World Bank said, in a recent report entitled “Declining Long-Term Growth Prospects: Trends, Forecasts, and Policies,” that the potential average global growth of GDP between 2022 and 2030 is expected to decline by about a third, compared to the rate that prevailed in the first decade of this century. to reach 2.2% annually.
The World Bank report indicated that for developing economies, the decline will be equally sharp, from 6% annually between 2000 and 2010 to 4% annually during the remainder of this decade, and this decline will be more severe in the event of a global financial crisis or economic recession.
“It could be a lost decade for the global economy,” said Indremit Gill, World Bank Chief Economist and Senior Vice President for Development Economics. “The continued decline in potential growth has serious implications for the world’s ability to address the growing set of challenges of our time, including income inequality, climate change, “But this decline can be reversed. The maximum growth of the global economy can be raised through policies that stimulate work, increase productivity and accelerate investment.”
The World Bank report shows that potential GDP growth could be boosted by up to 0.7 percentage points – to an annual average of 2.9% – if countries adopt sustainable growth-oriented policies. This would turn the expected slowdown into an acceleration of potential global growth in GDP.
Ayhan Kose, Director of the World Bank’s Prospects Group, said: “We owe it to future generations to craft policies that can deliver strong, sustainable and inclusive growth. A bold and collective policy push must now be made to reinvigorate growth. Every developing country will have to replicate the best record.” “For 10 years, he has worked on a variety of policies. At the international level, the policy response requires stronger global cooperation and a new impetus for private capital mobilization.”
The report identified specific policy measures that could have an impact on enhancing long-term growth prospects, including achieving consistency in monetary, tax and financial frameworks, increasing investments, reducing trade costs, and benefiting from the services sector, which could become the new engine of economic growth, in addition to In addition, increased participation in the labor force.
The report stressed the need to strengthen global cooperation, as international economic integration has helped drive global prosperity for more than two decades since 1990, and it is necessary to restore this ability to stimulate trade, accelerate climate action, and mobilize the necessary investments to achieve the goals of sustainable development.
Reda Abdel Nour / Ramy Samih