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Global Economy Faces Weakest Decade Since 1960s
14 Jan
Summary
- Global economy projected for weakest growth since the 1960s.
- Poorer countries face particularly grim economic prospects.
- Governments worldwide are burdened by record levels of debt.
The World Bank has issued a stark warning, projecting the global economy for its weakest decade of growth since the 1960s. Despite a post-Covid rebound and resilience to shocks, future expansion is anticipated to be sluggish, with a disproportionately negative impact on developing countries. This forecast significantly dampens earlier expectations for a robust economic 'roaring Twenties.'
The latest Global Economic Prospects report anticipates a slight slowdown in growth to 2.6% this year, an upward revision from previous predictions, largely due to better-than-expected US performance. However, the overall outlook remains subdued and uncertain, with the World Bank chief economist highlighting that advanced economies are richer, yet over a third of low-income economies may be poorer than five years prior.
This period of economic uncertainty coincides with growing global geopolitical discord, as noted by organizers of the World Economic Forum in Davos. The WEF acknowledges the world faces its greatest upheaval since World War II, emphasizing the necessity of dialogue amidst deepening international schisms and record government debt.
