An anticipated economic slowdown in China is likely to drag global growth down to its lowest level this century, the World Bank said Monday, proposing measures to prevent a “lost decade” of growth.
The world’s potential growth – its maximum long-term growth rate without sparking inflation – will slow to an average annual rate of just 2.2% this decade, the World Bank said in a statement.
A confluence of factors, including the lingering impact of the Covid-19 pandemic, the war in Ukraine and the ongoing risks to the financial sector in Europe and the United States, are all acting to slow the global economy, which the bank expects to expand by just 1.7% this year.
The Washington-based multilateral lender predicts that China’s economy will help keep the global economy from entering a recession due to an annual growth rate of 5% this year.
But its ability to keep the world’s economy afloat will wane as its growth slows in the years ahead, the bank said.
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