According to a World Bank report on the global economy: Global growth has declined since the outbreak of the pandemic…
World Bank report: The pandemic has deepened the gap between the economies of rich and poor countries...
Cairo – Amr AbdulRahman – [AISC News[
A World Bank report on the global economy revealed that, after the first 25 years of this century, the global economy has experienced a decline in growth since the outbreak of the pandemic. It is now growing at a pace insufficient to reduce extreme poverty and create much-needed jobs.
According to projections in the latest edition of the World Bank Group’s Global Economic Prospects report, the average growth rate this decade will be the lowest since the 1960s.
Although almost all advanced economies will be wealthier in terms of per capita income than they were before the pandemic, 25% of developing countries – and more than a third of all low-income economies – will be poorer than they were five years ago.
In short, growth in the 2020s was not strong enough to enable all countries to overcome the challenges and difficulties. Certainly, it was not the kind of growth that lifted more than a billion people out of extreme poverty in the 1990s and 2000s.
Indeed, it has been a source of disparities in living standards between low-income and high-income economies. More than half of the 10% increase in global GDP per capita since 2019 is attributable to the performance of wealthier economies.
By the end of the year, average per capita GDP in developing economies will reach approximately US$6,500, roughly 12% or slightly less than the average per capita GDP in advanced economies. The gap is even more pronounced for low-income countries, where per capita GDP is less than US$700, about 1% of the per capita GDP in high-income economies.
These trends cannot be explained as bad luck. In a very large number of developing countries, current trends reflect policy mistakes that could have been avoided.
