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Global growth at terrible risk due to Omicron: World Bank

News Desk || risingbd.com

Published: 16:41, 12 January 2022  
Global growth at terrible risk due to Omicron: World Bank

Since the commence of the coronavirus pandemic, nearly all countries of the world experienced a significant impact on the growth of gross domestic product (GDP). As a result, the growth of many countries is suffering from positive to negative and struggling to cope up economically. Although there is a forecast to recover the growth from this year, global growth is again under threaten due to Omicron, the new variant of coronavirus.

A press release over “The Global Economic Prospects” of the World Bank (WB) revealed the information on Wednesday (January 12).

According to the report, 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.

WB said the rapid spread of the Omicron variant indicates that the pandemic will likely continue to disrupt economic activity in the near term. In addition, a notable deceleration in major economies—including the United States and China—will weigh on external demand in emerging and developing economies. At a time when governments in many developing economies lack the policy space to support activity if needed, new COVID-19 outbreaks, persistent supply-chain bottlenecks and inflationary pressures, and elevated financial vulnerabilities in large swaths of the world could increase the risk of a hard landing.

“The world economy is simultaneously facing COVID-19, inflation, and policy uncertainty, with government spending and monetary policies in uncharted territory. Rising inequality and security challenges are particularly harmful for developing countries,” said World Bank Group President David Malpass. “Putting more countries on a favorable growth path requires concerted international action and a comprehensive set of national policy responses.”