World Bank Warns of Weakest Global Economy Growth Since Pandemic

Title: Global Economy Faces Slowest Growth in 30 Years Due to Multiple Challenges, Warns World Bank

The global economy is expected to face its slowest growth since the pandemic, according to a warning issued by the World Bank. The institution predicts that global growth will reach a mere 2.4% in 2024, marking the weakest period of growth since the 2008 financial crisis.

The sluggish growth has been attributed to a variety of factors by the World Bank. Higher interest rates, conflicts in Ukraine and the Middle East, and geopolitical risks have all played a role in hindering economic progress. These challenges have led to a slowdown in global trade and investment, causing potential inflationary bottlenecks and disruptions in shipping routes.

While the United States is expected to show more resilience, with projected growth of 2.6% for last year, concerns about rising prices persist. US Secretary of State Anthony Blinken has highlighted the impact of attacks on vessels on global shipping and expressed worries about inflationary pressures.

Central banks worldwide are working to address the cost of living crisis. However, the higher interest rates in major economies make borrowing more expensive for poorer countries, trapping them in high levels of debt with limited access to food. The World Bank’s Chief Economist, Indermit Gill, expressed his concern about these developing nations.

Income disparities between richer and poorer countries are widening, as wealthier nations recover from the pandemic at a faster pace. This further exacerbates the challenges faced by developing countries, making it difficult for them to overcome their economic setbacks.

The World Bank has also expressed concern about the rising cost of food. Of particular note is the 27% increase in the price of rice and India’s restrictions on rice exports. These factors significantly impact global food supplies and contribute to the overall struggle in the global economy.

China, the world’s second-largest economy, continues to face difficulties in consumer spending and a slowdown in growth. This further adds to the global economic slowdown, given China’s significant contribution to the world economy.

Overall, the World Bank predicts that the five years leading up to 2024 will be marked by the slowest period of global economic growth in 30 years. The multitude of challenges, including higher interest rates, geopolitical risks, and income disparities, have hampered recovery efforts, prompting concerns about the long-term impact on the global economy.