After speedy rebounding from the economic disruption caused by the Covid-19 pandemic in 2021, the world economy would show a slower pace of growth this year and in 2023, according to the latest forecast by the World Bank.
The US-based international financial institution released its latest Global Economic Prospects report this week. In a press release on Tuesday, January 12, it wrote that global growth is expected to decelerate markedly from 5.5 percent in 2021 to 4.1 percent in 2022 and 3.2 percent in 2023 as pent-up demand dissipates and as fiscal and monetary support is unwound across the world.
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«The world economy is simultaneously facing COVID-19, inflation, and policy uncertainty, with government spending and monetary policies in uncharted territory. Rising inequality and security challenges are particularly harmful for developing countries,» commented World Bank Group President David Malpass. «Putting more countries on a favorable growth path requires concerted international action and a comprehensive set of national policy responses.»
The organisation projected that the slowdown will coincide with a widening divergence in growth rates between advanced economies and emerging and developing economies. Growth in advanced economies is expected to decline from 5 percent in 2021 to 3.8 percent in 2022 and 2.3 percent in 2023—a pace that, while moderating, will be sufficient to restore output and investment to their pre-pandemic trend in these economies. In emerging and developing economies, however, growth is expected to drop from 6.3 percent in 2021 to 4.6 percent in 2022 and 4.4 percent in 2023, according to the press release.
World Bank projects slower global economic growth for 2022 and 2023
