The World Bank has warned that the global economy may suffer from a "lost decade" if it supports the adoption of initiatives to boost productivity, investment and increase employment.
The World Bank said, in a report: “The average global economic growth is likely to decline to its lowest level in 3 decades at 2.2% annually until 2030, compared to an average growth of 2.6% in the period between 2011 and 2021, and 3.5% between 2000 and 2010.” .
The report indicated that concerted efforts to promote investment in sustainable sectors, reduce trade costs, increase growth in services and expand participation in the labor force, may boost potential GDP growth by 0.7% to 2.9%.
"We may be witnessing a lost decade of growth for the global economy, but policies that stimulate work, productivity and investment may reverse this trend," said Endermit Gill, chief economist at the World Bank.
The World Bank stated that the overlapping crises during the past few years, including the Corona epidemic and the Russian invasion of Ukraine, have caused an end to 3 decades of sustainable economic growth.
Okaz (Washington) @okaz_okline