The World Bank (WB) decreased its global growth prediction for 2022 and next year, and warned that an increase in inflation, income inequality and debt could threaten the recovery in developing and emerging economies.
Global growth is anticipated to slow to 4.1% in this year and 3.2% in next year, the world bank stated in its report on ‘Global Economic Prospects’ on Tuesday.
The forecast follow a robust rebound in world growth as demand increased after lifting of Covid-19 lockdowns. The WB reported that the world economy increased 5.5% in 2021.
The WB said that the economies of USA, countries in the euro zone and China are anticipated to grow slowly this year. It also added that increase in Omicron cases will disrupt the economic activity in the coming time and may worsen growth predictions.
It warned the risks of a hard landing due to financial vulnerability, inflationary pressures and supply-chain issues in the world.
The World Bank is the first important global institution in the world this year to report about global growth predictions.
The International Monetary Fund (IMF) is anticipated to release its ‘World Economic Outlook’ report on Jan. 25.