Saturday, Sep 18, 2021
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Global economy to expand by 4% in 2021: World Bank

Global economy World Bank_IFM_Image
It also warned that rising Covid-19 cases and delays in vaccine distribution could limit the recovery to just 1.6%

The global economy is forecasted to expand by 4 percent this year, according to the World Bank. The economy contracted by 4.3 percent in 2020 due to the measures introduced by different governments across the world to deal with the spread of the Covid-19 virus.

In its, World Bank’s Global Economic Prospects (GEP) report, the bank also warned that increasing Covid-19 cases and delay in vaccine distribution could limit the recovery to just 1.6 percent. The report further forecast the global economy to expand by 3.8 percent in 2022.

World Bank said in a statement, “The near-term outlook remains highly uncertain. A downside scenario in which infections continue to rise and the rollout of a vaccine is delayed could limit the global expansion to 1.6 percent in 2021.”

World Bank President David Malpass said in a forward to the Global Economic Prospects report, “The global economy appears to be emerging from one of its deepest recessions and beginning a subdued recovery. While the global economy appears to have entered a subdued recovery, policy makers face formidable challenges – in public health, debt management, budget policies, central banking and structural reforms – as they try to ensure that this still fragile global recovery gains traction and sets a foundation for robust growth.

“To overcome the impacts of the pandemic and counter the investment headwind, there needs to be a major push to improve business environments, increase labour and product market flexibility, and strengthen transparency and governance.”

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