World Bank: The world says the world economy is slowly recovering from the recession. In 2021 it is estimated to be 4 percent.
World Bank: The World Bank said on Tuesday that the biggest recession in the world economy is coming out of recession and is now slowly improving. The Covid-19 vaccine has been launched in many countries around the world. “We expect the global economy to grow at 4 percent by 2021,” said World Bank President David Malpas. But even then it will be reduced by five per cent from the pre-epidemic situation. Read more – Gold imports: India’s gold imports decline after 11 years, find out how much gold was imported in 2020
“The global economy seems to be recovering from its deepest recession,” Malpas was quoted as saying by the Global Economic Prospects. The report says (according to the report) the chances of recovery will decrease if policymakers do not take steps to implement reforms that control epidemics and increase investment. Read more – Indian Railway News: Indian Railways has made history by doing this; There is no hospital train anywhere in the world
However, after the contraction in 2020, the global economy grew again at a rate of 4.3 percent. Many people died during the epidemic and many became infected with the disease, which sent shockwaves through the economy and plunged them into poverty. Due to which economic activities were affected for a long time. Read more – When will the vaccination campaign start in the country, find out where the issue is stuck
The report states that the spread of COVID-19 is being controlled with the priority of a near-term policy. Ensuring fast and comprehensive vaccination. However, in order to support economic reform, the authorities need to facilitate the reinvestment cycle for sustainable development, which is not dependent on government debt.
Malpas said the world economy is slowly improving. However, policymakers are facing tough challenges in public health, debt management, budget policy, central banking and structural reforms. They are trying to decide that gradual reforms are the basis for strong growth.
“A major push is needed to mitigate the effects of the epidemic and reduce investment conditions, improve the business environment, increase the flexibility of labor and commodity markets, and strengthen transparency and governance,” he said. “
The decline in global economic activity in 2020 is projected to be somewhat less severe than in the past, mainly due to the shallow contraction of the developed economy and further drastic reforms in China.
The bank said in its report that in contrast the activities of other emerging markets and developing economies were more than expected to be disrupted.
Carman Reinhart, chief economist at the World Bank Group, said that in many of these countries, financial weakness and the push for development have affected weak domestic and trade balance sheets. These also need to be considered.
According to the report, global growth is expected to be moderate to 3.8 percent in 2022. Which has been measured as permanent damage to the epidemic for potential development. In particular, the impact of the epidemic on investment and human capital is expected to reduce the likelihood of growth in emerging markets and developing economies (EMDEs) and bring back key development targets.
The report states that global recovery, which has been affected by the COVID-19 epidemic. It is hoped that the confidence, costs and trade supported by future vaccinations will gradually improve.
Although overall EMDE growth is projected at 4.6 percent in 2021-22. This improvement seems to be in line with China’s expected reforms. If China’s growth rate is removed from this, the recovery in EMDE will be slower. Then in 2021-22 it could average 3.5 percent. The impact of the epidemic will continue, which will reduce costs and demand.
The report further states that this is the right time to invest. It will benefit both. This will help the economy, which will also benefit investors in the near future.
Malpas said our response today to the epidemic crisis will shape our common future in the years to come. We must be prepared for the opportunity to lay the foundations for a sustainable, equitable and sustainable global economy.
(With PTI input)