Almost all of the global economic forces that have driven progress and prosperity over the past three decades are fading away. ‘A worrying trend,’ says the World Bank in a report released today. “There may be a lost decade in the making of the global economy.”
As a result, average global economic growth between now and 2030 is projected to decline by about a third of its pace over the first decade of this century. This equates to a decrease of more than two percent growth per year.
recession
For emerging economies, growth is slowing, from 6% a year between 2000 and 2010, to 4% a year for the rest of this decade. These discounts would be much greater in the event of a global financial crisis or recession.
According to the institute, the continued decline in growth has “serious consequences” for the ability to address growing problems such as persistent poverty, income inequality and climate change. But this decline is reversible, adds the World Bank. This requires policies that “encourage work, increase productivity and accelerate investment”.
Sustainable and inclusive growth
According to the institute, “we have a duty towards future generations to formulate policies capable of guaranteeing robust, sustainable and inclusive growth”. Under current policy, the World Bank estimates that the maximum long-term growth rate of the world economy, without fueling inflation, will fall to a three-decade low by 2030.
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
