Emerging variants of Covid-19 and rising inflation, debt and income inequality will cause overall global GDP to fall from 5.5% in 2021 to 4.1% in 2022, according to a World Bank report.
After a strong rebound in 2021, the global economy will face a slowdown as the coronavirus variant, rising inflation, the threat of global debt and income inequality will hamper economic recovery, according to the World Bank’s latest report, Global Economic Outlook. “The world economy is simultaneously confronted with COVID-19, inflation and policy uncertainty, with government spending and monetary policy in uncharted territory. Rising inequality and security challenges are particularly detrimental to developing countries,” said World Bank Group President David O. Malpass said. “Coordinated international action” and comprehensive national policy measures will be needed to put the global economy back on a growth track.
The World Bank on Tuesday maintained its forecast for India’s FY22 GDP growth at 8.3 percent, according to its global economics prospectus. Additionally, the Washington-based agency has raised its forecasts for FY23 and FY24 to 8.7% and 6.8%, respectively.
The World Bank forecast comes after the Indian government pre-estimated that India’s gross domestic product will grow by 9.2% in the current fiscal year to March 2022.
The global agency further forecast growth in the US, the euro zone and China, and warned that high debt levels, rising income inequality and a new variant of Covid-19 threaten the recovery of developing economies.
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