Global Economy on a steep Slowdown: According to the most recent World Bank study, the global economy is experiencing a sharp decline after almost a year of uncertainty in 2022. The World Bank report noted that the COVID-19 pandemic’s repercussions are still being felt today in the form of education losses, worldwide inflation, supply chain disruptions, and other issues on a global scale.
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Global Economy on a steep Slowdown: Key Points
- The global economy is currently experiencing its steepest slowdown after a post-recession recovery since 1970, according to the report 2022 in Nine Charts, which also discussed growth.
- Global consumer confidence has already fallen significantly more sharply than it did in the years leading up to previous global recessions.
- The economy of the three biggest economies in the world—the United States, China, and the euro zone—have been rapidly slowing.
- It went on to say that given the situation, even a slight blow to the world economy over the course of the ensuing year may send it into a recession.
- In its study, the World Bank also noted that the escalating intensity of natural disasters continues to shed light on the social and economic effects of climate change.
India’s GDP Growth Rate: Economic Growth & Its Future Forecasts
Findings of the Report by World Bank
- The Ukraine war, high inflation, supply chain disruptions, and the global economic downturn all worked together to drive significant price increases for many agricultural products and inputs, such as fertilisers, according to the report, which claimed that 2022 was marked by a marked increase in food insecurity around the world.
- According to the research, the Covid-19 pandemic caused the biggest setback to attempts to reduce global poverty in decades, and the recovery has been incredibly uneven.
- Additionally, it noted that the debt crisis affecting developing nations has worsened over the previous year, with almost 60 percent of the world’s poorest nations either in debt distress or at risk of it.
ADB Keeps India’s GDP Growth Unchanged at 7%
The epidemic and vulnerabilities in the real estate market had caused the World Bank to lower its China growth prediction for the year. The World Bank announced that it had reduced its projection from the 4.3% expected in June to 2.7% in an official statement. Additionally, it decreased the prediction for the next year from 8.1% to 4.3%.