Two reports published Tuesday, January 11, one from the World Bank, the other by the Davos Forum, draw a pessimistic view of growing inequalities. Both warn about a slowdown in the recovery and climate risks, which poor countries will bear the brunt of.
These are two warnings for the economy in pandemic remission. “The World Bank and the World Economic Forum [de Davos] warn against growing inequalities ” by each publishing a report “On the stagnation of the world economy and the pessimistic outlook for 2022”, note Quartz.
The Omicron variant, the combined impact of soaring inflation, high levels of public debt and growing income inequality “Threaten recovery in emerging and developing economies”, Explain Al Jazeera by reporting on the report on the outlook for the world economy released Tuesday, January 11 by the World Bank. The financial institution “Predicts a slowdown in economic growth around the world, of 5.5 % in 2021 at 4.1 % in 2022 “, continues the English site of the pan-Arab channel. More forecasts “Pessimistic than in June”, when the international institution was counting on 4.3%.
Hard landing
Since the start of the pandemic, the World Bank “Sounds the alarm bells on growing inequalities both within and between nations” and his new report “Is no exception”. Developing countries cannot afford the recovery and soaring house or stock prices “Continues to enrich the rich by fueling inflation that hits low-income households in particular”. Unlike developed economies, these states “Have less monetary leeway to let inflation run away”. The World Bank is concerned about a “Hard landing” recovery in these countries.
Raw material shortages that rock commodity labels and extreme weather events “Worsen the risks of food insecurity, which weighs even more on health and the nutritional situation”, says the World Bank.
One might think that the World Bank’s pessimism stems from its action in the direction of developing countries. Yet it is the same gloom that emerges from Global Risks Report of the World Economic Forum (WEF). The big meeting in Davos for political and economic decision-makers has been postponed until the summer because of Covid
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