A World Bank report said the newly emerging Covid-19 variants and increased inflation, debt and income inequality will lead to a decline in overall global GDP from 5.5 per cent in 2021 to 4.1 per cent in 2022.
The latest World Bank report, Global Economic Prospects, says that after a strong rebound in 2021, the global economy will face a slowdown as the threat of new Covid variants, rising inflation, global debt and income inequality will hamper economic recovery. .
World Bank Group President David Malpass said, “The world economy simultaneously faces COVID-19, inflation and policy uncertainty, with government spending and monetary policies in uncharted territory. Growing inequality and security challenges are particular to developing countries.” are seriously harmful.”
He said that “joint international action” and comprehensive national policy measures would be needed to put the global economy back on the growth trajectory.
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