• The World Bank has published the Global Economic Prospect Report. The report highlights that the results of the COVID-19 Pandemic are far from over.

Findings of the Report

• The report forecasts that that global economic growth will slow to 4.1% in 2022, from 5.5% in 2021.
• This is because;
  • the Governments are losing the capacity to provide further fiscal support due to rising debt;
  • Supply chain bottlenecks that impede the flow of goods and services, and the resulting inflation will add to existing economic miseries. Several economies are at high risk of debt distress and energy prices are expected to surge further.
• Economies like Argentina (10%) and India (8.3%) will have high growth rate but that is due to base year effect as most economies contracted during 2020-21.
• Usually, emerging market and developing economies (EMDEs), helped by their lower base, grow faster than advanced economies. But, they will perform poorer than advanced economies in 2023.
• This is because EMDEs have limited policy space to provide additional support.

Source: EPIC February 2022