Coronavirus, followed by Russia-Ukraine conflict, pose threat to global e

Washington: A new report by the World Bank warned that the slowdown in the global economy has gained momentum because of the hit taken due to the Coronavirus pandemic, followed by the Russia-Ukraine conflict. The World Bank has also warned in the report that the decline in the economic growth and the raging inflation will likely continue for some more time. The report also points out that there is a fear of economic growth being stalled, and the countries with medium or low incomes will be hit the hardest. The economic growth rate in the global economy is likely to decline to 2.9% for the current year. The global economy recorded a growth rate of 5.7% in the year 2021. Considering that, the World Bank has predicted a giant slide in the economic growth rate.

Major upheavals are taking place given the Russia-Ukraine conflict, and investments and trade have been worst affected. The strategic decisions and financial assistance declared for the Coronavirus pandemic have been withdrawn. At the same time, the World Bank has claimed a marked decline in demand for products on the international level. There has been a massive decline in the per capita income of the developing countries because of the Coronavirus pandemic and the Russia-Ukraine conflict. The World Bank has expressed concern in the report that the per capita income of these countries will decline by nearly 5% compared to the pre-Corona period. The World Bank warned, ‘The economic growth is receiving consistent jolts because of the Russia-Ukraine conflict, lockdowns in China, disruptions in the global supply chain and the fear of growth rate getting stalled. In this scenario, it will be difficult for many countries to avert recession.’ The World Bank has compared the current situation to the stagnation of the global growth rate in 1970 in its report titled ‘Global Economic Prospects’.

The World Bank has predicted that the growth rate in the top two economies, the United States and China, will become less than half. The World Bank has noted that the United States recorded an economic growth rate of 5.7%, but this year, it will crash below 2.5%, whereas China had progressed at 8.1% in the last year, and this year it will be around 4.3%. Two months ago, the International Monetary Fund (IMF) also warned about the threats to the global economy. The uncertainties in the global economy have increased because of the Russia-Ukraine conflict. The IMF had warned that this uncertainty could affect the growth of the worldwide economy, and the economy might be slowing down.