{"id":65206,"date":"2023-03-29T06:49:14","date_gmt":"2023-03-29T11:49:14","guid":{"rendered":"https:\/\/olduvai.ca\/?p=65206"},"modified":"2023-03-29T06:49:14","modified_gmt":"2023-03-29T11:49:14","slug":"world-bank-warns-of-lost-economic-decade-as-turmoil-spreads","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=65206","title":{"rendered":"World Bank Warns Of ‘Lost Economic Decade’ As Turmoil Spreads"},"content":{"rendered":"
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World Bank Warns Of ‘Lost Economic Decade’ As Turmoil Spreads<\/a><\/h3>\n<\/header>\n
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The world is in a precarious situation, with the potential for nuclear conflict. Central banks are taking aggressive measures to address decades-high inflation by raising interest rates, which in turn is causing a banking crisis in the Western world. As recession risks surge worldwide and international trade fractures, the future of the global economy appears to be heading down a dark path.<\/p>\n

“A lost decade could be in the making for the global economy,”<\/strong>\u00a0Indermit Gill, the World Bank’s Chief Economist and Senior Vice President for Development Economics,\u00a0warned in a new report<\/a>.<\/p>\n

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The report “Falling Long-Term Growth Prospects: Trends, Expectations, and Policies”\u00a0<\/em>reveals new forecasts that show global long-term potential output in growth rates are expected to slide:<\/p>\n

Nearly all the economic forces that powered progress and prosperity over the last three decades are fading. As a result, between\u00a0<\/em>2022 and 2030, average global potential GDP growth is expected to decline<\/em><\/strong>\u00a0by roughly a third from the rate that prevailed in the first decade of this century\u2014to 2.2% a year.<\/em><\/p>\n

For developing economies, the decline will be equally steep: from 6% a year between 2000 and 2010 to 4% a year over the remainder of this decade.\u00a0<\/em>These declines would be\u00a0much steeper in the event of a global financial crisis or a recession<\/u><\/em><\/strong>.<\/em><\/p><\/blockquote>\n

World Bank’s chief economist continued:<\/p>\n

“The\u00a0ongoing decline in potential growth has serious implications<\/strong>\u00a0for the world’s ability to tackle the expanding array of challenges unique to our times\u2014stubborn poverty, diverging incomes, and climate change.”<\/em><\/p><\/blockquote>\n

However, he said:\u00a0<\/em><\/p>\n

“But this decline is reversible. The global economy’s speed limit can be raised\u2014through policies that incentivize work, increase productivity, and accelerate investment.”<\/em><\/p><\/blockquote>\n

Ayhan Kose, director of the World Bank’s forecasting group, said the fracturing of the global economy implies\u00a0“the\u00a0golden era of development appears to be coming to an end<\/u>.”<\/strong><\/p>\n

\u2026click on the above link to read the rest\u2026<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

World Bank Warns Of ‘Lost Economic Decade’ As Turmoil Spreads The world is in a precarious situation, with the potential for nuclear conflict. Central banks are taking aggressive measures to address decades-high inflation by raising interest rates, which in turn is causing a banking crisis in the Western world. As recession risks surge worldwide and […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,5],"tags":[2014,124,581,3303,888,4318],"class_list":["post-65206","post","type-post","status-publish","format-standard","hentry","category-economics","category-geopolitics","tag-banking-crisis","tag-central-banks","tag-nuclear-war","tag-stagflation","tag-world-bank","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/65206","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=65206"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/65206\/revisions"}],"predecessor-version":[{"id":65207,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/65206\/revisions\/65207"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=65206"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=65206"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=65206"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}