World Bank’s Global Economic Prospects Update
According to the Global Economic Prospects Update released by World Bank, global economy is expected to expand 5.6 per cent in 2021. This would be the fastest post-recession pace in 80 years because of strong rebounds from a few major economies.
Key Findings of prospects
- As per latest edition, many emerging markets & developing economies are struggling with COVID-19 pandemic and its aftermath.
- There are signs of global recovery but covid-19 pandemic continues to inflict poverty and inequality among people in developing countries.
- Per capita income losses will not be unwound by 2022 for two-thirds of emerging market and developing economies.
- Among low-income economies, effects of pandemic have reversed poverty reduction gains and aggravated insecurity.
- US growth is projected to 6.8 percent in 2021 because of large-scale fiscal support and easing of pandemic restrictions.
- Growth in other developed economies is also gaining pace but with a lesser extent.
- China will rebound to 8.5 percent because of release of pent-up demand.
- Emerging market and developing economies will expand to 6 per cent in 2021 as a result of higher demand and elevated commodity prices.
- Recovery in many countries is delayed because of resurgence of COVID-19 cases and lagging vaccination progress.
- Rebound in group of developing countries, other than China, is expected to be 4.4 percent.
What does report recommends?
Report highlights, globally coordinated efforts are need of the hour to accelerate vaccine distribution and debt relief specially among low-income countries. After health crisis eases, policymakers should address pandemic’s lasting effects and take steps to bring in green, resilient and inclusive growth.
Month: Current Affairs - June, 2021