The World Bank Expects a Sharp Slowdown in Global Growth This and Next Year, Warning the Risk of a Hard Landing in the Developing Countries

Translated by: MOS Translation Team – tang777

According to a comprehensive news report from foreign media on January 11, the World Bank lowered its economic growth forecasts for the United States, Europe, and China, warning of widespread excessive debt, aggravate wealth, and poverty, as well as new variants of Covid, pose a threat to the recovery of the developing economies system. 2022 global economic growth will drop significantly from 5.5% last year to 4.1% in 2022, and will be to 3.2% in 2023, as governments stop the provision of massive fiscal and monetary stimulus at the beginning of pandemic.

The World Bank expects economic activity in developed countries to rebound sharply in 2021 after shrinking in 2020. But warned that inflation will be more persistent due to factors such as supply chain, labor issues, and new Covid-19 variants of the CCP virus. It has the potential to hit global economic growth. The epidemic has deepened the growth gap between developed and developing countries. It has also led to anomalies in growth within countries, which could exacerbate social tensions and unrest.

Ayhan Kose of the World Bank’s Outlook Group believes that the risk of a “hard landing” in developing countries is elevated because they have limited options to provide the necessary financial assistance, inflationary pressures remain high, and fiscal vulnerability is considerable.

The report predicts that the growth rate of developed economies will fall to 3.8% in 2022 from 5% in 2021, and will further decline to 2.3% in 2023. The U.S. gross domestic product (GDP) growth rate in 2021 is estimated to be lowered by 1.2 percent to 5.6%. At the same time, it is estimated that growth will plummet to 3.7% in 2022 and 2.6% in 2023. The World Bank said Japan’s GDP growth will fall to 1.7% in 2021, 1.2 percentage points less than estimated in June. The growth rate will rise to 2.9% in 2022.

Proofread by: Stay                                                          

Edited by: Stay                                                            

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