The World Bank “likely” continues to disrupt global economic activities due to the rapid spread of the Coronavirus mutants
The World Bank said that the global economy is expected to witness a sharp slowdown in the midst of new risks arising from the mutations of the Coronavirus, and high levels of inflation, debt, and income inequality that may threaten the recovery of emerging and developing economies.
This came in the “Global Economic Prospects” report, which was issued today, Tuesday, and is considered the latest issue of the bank, which indicated that “the global growth rate is expected to record a significant decline from 5.5% in 2021 to 4.1% in 2022 and 3.2% in 2023,” with End support measures at the level of fiscal and monetary policies around the world. China, the second-largest economy in the world, is expected to witness a slowdown in growth, according to the report, to "5.1% in 2022", compared to "8% last year."
The risk of a sharp drop is exacerbated by new waves of the Corona pandemic
The World Bank report explicit that “With governments in several developing economies not having space to act through policies to support economic activity if required, the risks of a tough landing is also exacerbated by new waves of the Corona pandemic, continued disruptions in offer chains, inflationary pressures, and intense voters.” monetary weakness in massive elements of the planet.
The global economy is facing the Corona pandemic and high inflation rates
Commenting on these conditions, World Bank President David Malpass said: “The global economy is simultaneously facing the Corona pandemic, high rates of inflation and uncertainty about public policies, while government spending and monetary policies are facing an unusual situation,” noting that “developing countries are suffering greatly under the pressure of increasing Inequality and security challenges. Putting more countries on a growth path requires coordinated international efforts and a comprehensive set of national policy responses.”
The economic slowdown will coincide with the widening disparity in growth rates between advanced and emerging market economies and developing economies, and approved reports have confirmed all this.
The rapid spread of the omicron mutant indicates that the pandemic will continue to disrupt economic activities
The report adds that the speedy unfold of the letter mutant indicates that the pandemic can probably still disrupt economic activities within the short term. Moreover, the marked retardation in advanced economies - as well as u. s. and China - can have an effect on external demand in rising markets and developing economies.