In its latest semiannual Global Economic Prospects report, the World Bank highlighted several factors contributing to the subdued economic outlook. Advanced economies are expected to see growth of merely around 1.2%, while emerging markets and developing nations are predicted to experience growth rates below 4%. This is a marked shift from past trends where emerging economies often exhibited more robust growth figures.
One of the key focal points of the report is China, which is projected to encounter a considerable slowdown in its economic expansion compared to last year’s performance. The World Bank pointed to several challenges facing the Asian giant, including a decline in consumer spending, structural issues such as an ageing population and high levels of debt.
The broader implications of these projections are significant, with the World Bank suggesting that the global economy could be entering a “decade of missed opportunities.” This period may be characterized by the weakest growth since the 1990s for most countries, due in part to the persistent recovery efforts from the pandemic and increased frequency and intensity of natural disasters driven by climate change.
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Source: Economy - investing.com
