World bank warns of sharp decline in global economic growth with high-level debts
Zee News
The global growth is expected to decelerate "markedly" to 4.1% in 2022 from 5.5% last year, and drop further to 3.2% in 2023 as pent-up demand dissipates and governments unwind massive fiscal and monetary support provided early in the pandemic.
Washington: The World Bank on Tuesday (January 11) cut its forecasts for economic growth in the United States, the Euro area and China and warned that high debt levels, rising income inequality and new COVID-19 variants threatened the recovery in developing economies.
It said global growth is expected to decelerate "markedly" to 4.1% in 2022 from 5.5% last year, and drop further to 3.2% in 2023 as pent-up demand dissipates and governments unwind massive fiscal and monetary support provided early in the pandemic.
The forecasts for 2021 and 2022 were 0.2 percentage points lower than in the bank`s June Global Economic Prospects report. The International Monetary Fund is also expected to downgrade its growth forecasts in its update on Jan. 25.
