Global GDP growth to slow through 2023 amid COVID-19, inflation: World Bank

World Bank

© APA | World Bank

# 12 January 2022 09:50 (UTC +04:00)

The global economy is facing a dramatic downturn due to new dangers from COVID-19 variants, as well as rising inflation, debt, and income inequality, which might jeopardize the recovery in emerging and developing economies, according to the World Bank, APA reports citing WIO News.

As pent-up demand fades, fiscal and monetary assistance is removed around the world, and supply disruptions linger, global growth is predicted to slow to 4.1 percent in 2022 and 3.2 percent in 2023, according to the Washington-based lender's Global Economic Prospects report released on Tuesday.

Following a strong rebound in 2021, the global economy is entering a pronounced slowdown amid fresh threats from COVID-19 variants and a rise in inflation, debt, and income inequality that could endanger the recovery in emerging and developing economies.

The World Bank said that global growth is expected to decelerate markedly from 5.5 percent in 2021 to 4.1 percent in 2022 and 3.2 percent in 2023 as pent-up demand dissipates and as fiscal and monetary support is unwound across the world.

The World Bank said economic growth in Europe and Central Asia will slow to 3 percent in 2022 and decline further to 2.9 percent in 2023, the World Bank said.