{"id":550104,"date":"2022-01-11T17:09:57","date_gmt":"2022-01-11T15:09:57","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=550104"},"modified":"2022-01-11T17:09:57","modified_gmt":"2022-01-11T15:09:57","slug":"world-bank-cuts-2022-global-growth-forecast","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business-opinion\/550104\/world-bank-cuts-2022-global-growth-forecast\/","title":{"rendered":"World Bank cuts 2022 global growth forecast"},"content":{"rendered":"

Covid-19 flare-ups, diminished policy support, and lingering supply-chain bottlenecks will see the global economic recovery cool more than previously estimated in 2022, after last year\u2019s expansion clocked the fastest post-recession pace in eight decades, the World Bank said.<\/p>\n

Global gross domestic product will probably increase 4.1% this year, less than a 4.3% forecast in June, the Washington-based development organization said in its semi-annual Global Economic Prospects report Tuesday. By 2023, annual output is expected to remain below the pre-pandemic trend in all regions with emerging-market and developing economies, while in advanced economies, the gap is estimated to close, it said.<\/p>\n

\u201cThere is there a serious slowdown underway,\u201d Ayhan Kose, the chief economist of the Prospects Group at the institution, said in an interview. The global economy \u201cis basically on two different flight paths: Advanced economies are flying high; emerging-market, developing economies are somewhat flying low and lagging behind.\u201d<\/p>\n

\"\"<\/a><\/p>\n

The global outlook is clouded by what World Bank Group president David Malpass termed \u201cexceptional uncertainty.\u201d Downside risks include renewed Covid-19 outbreaks, the possibility of de-anchored inflation expectations, and financial stress in a context of record-high debt levels, the bank said.<\/p>\n

In emerging markets with limited policy space to provide support, the risks heighten chances of a hard landing for their economies, it said.<\/p>\n

\"\"<\/a><\/p>\n

In advanced economies, high vaccination rates and sizable fiscal support have helped cushion some of the adverse economic impacts of the pandemic. In contrast, the pace of recovery for emerging nations has been further damped by waning policy support and a tightening of financing conditions.<\/p>\n

Digging Deeper<\/strong><\/p>\n

The bank trimmed its outlook for the US economy this year by half a percentage point to 3.7%, and cut its forecast for China\u2019s economic expansion by 0.3 percentage point to 5.1%<\/p>\n

Although the growth forecasts for emerging and developing nations are only slightly weaker than previous projections, this masks notable divergences across regions, the bank said.<\/p>\n

Downgrades in Europe and Central Asia and Latin America and the Caribbean – due to faster removal of policy support – are accompanied by upgrades in the Middle East and North Africa and Sub-Saharan Africa amid higher-than-expected oil revenues<\/p>\n

In 2023, emerging and developing nations are expected to suffer \u201csubstantial scarring,\u201d with aggregate output seen 4% below its pre-pandemic trend. In fragile and conflict-affected emerging and developing countries, output next year is seen 7% below pre-virus trends \u201cas they face heightened uncertainty, security challenges, weak investment prospects, and anemic vaccination progress,\u201d the bank said.<\/p>\n

\n

Read: Massive emigration wave expected to hit South Africa and other countries<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Covid-19 flare-ups, diminished policy support, and lingering supply-chain bottlenecks will see the global economic recovery cool more than previously estimated in 2022, after last year\u2019s expansion clocked the fastest post-recession pace in eight decades, the World Bank said.<\/p>\n","protected":false},"author":59,"featured_media":292778,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[26,16556],"class_list":["post-550104","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-opinion","tag-headline","tag-prospects-group"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/550104","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/59"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=550104"}],"version-history":[{"count":1,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/550104\/revisions"}],"predecessor-version":[{"id":550110,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/550104\/revisions\/550110"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/292778"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=550104"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=550104"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=550104"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}