{"id":87552,"date":"2023-03-27T00:00:00","date_gmt":"2023-03-27T00:00:00","guid":{"rendered":"http:\/\/kuwaitnewsgazette.com\/?guid=c4c264bab559122d4a517ff3b0f48a71"},"modified":"2023-03-27T00:00:00","modified_gmt":"2023-03-27T00:00:00","slug":"global-economy-set-to-three-decade-low-by-30-world-bank-report","status":"publish","type":"post","link":"https:\/\/kuwaitnewsgazette.com\/global-economy-set-to-three-decade-low-by-30-world-bank-report\/","title":{"rendered":"Global economy set to three-decade low by ’30 – World Bank report"},"content":{"rendered":"
The global economy’s “speed limit”-the maximum long-term rate at which it can grow without sparking inflation-is set to slump to a three-decade low by 2030.<\/p>\n<\/p>\n
An ambitious policy push is needed to boost productivity and the labor supply, ramp up investment and trade, and harness the potential of the services sector, a new World Bank report shows.<\/p>\n<\/p>\n
The report, Falling Long-Term Growth Prospects: Trends, Expectations, and Policies, offers the first comprehensive assessment of long-term potential output growth rates in the aftermath of the COVID-19 pandemic and the Russian invasion of Ukraine.<\/p>\n<\/p>\n
These rates can be thought of as the global economy’s “speed limit.” The report documents a worrisome trend: nearly all the economic forces that powered progress and prosperity over the last three decades are fading.<\/p>\n<\/p>\n
As a result, between 2022 and 2030 average global potential GDP growth is expected to decline by roughly a third from the rate that prevailed in the first decade of this century-to 2.2 percent a year.<\/p>\n<\/p>\n
For developing economies, the decline will be equally steep: from 6 percent a year between 2000 and 2010 to 4 percent a year over the remainder of this decade.<\/p>\n<\/p>\n
These declines would be much steeper in the event of a global financial crisis or a recession.<\/p>\n<\/p>\n
“A lost decade could be in the making for the global economy,” said Indermit Gill, the World Bank’s Chief Economist and Senior Vice President for Development Economics.<\/p>\n<\/p>\n
“The ongoing decline in potential growth has serious implications for the world’s ability to tackle the expanding array of challenges unique to our times-stubborn poverty, diverging incomes, and climate change. But this decline is reversible.<\/p>\n<\/p>\n
The global economy’s speed limit can be raised-through policies that incentivize work, increase productivity, and accelerate investment.” (end) asj.mb<\/p>\n<\/p>\n
Source: Kuwait News Agency<\/p><\/p>\n","protected":false},"excerpt":{"rendered":"
The global economy’s “speed limit”-the maximum long-term rate at which it can grow without sparking inflation-is set to slump to a three-decade low by 2030.An ambitious policy push is needed to boost productivity and the labor supply, ramp up investme…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35],"tags":[],"yoast_head":"\n