World Bank: Slashes Global Growth Forecast Given the Pandemic

The World Bank slashed the global growth forecast for the current year, saying that based on the pandemic waves the world is facing, the perspectives of the possibility of unanchored inflation expectations, and financial stress in a context of record-high debt levels, the perspectives are "clouded by various downside risks."

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On Tuesday, the World Bank Group, warned of various downside risks to global growth prospects for 2022 amid incessant COVID-19 waves, rising inflation and lingering supply bottlenecks.

The Global Economic Prospects released semiannually, disclosed that global economy's perspectives are growing by 4.1 percent this year, 0.2 percentage points lower than last June's prediction.

It was expected for the U.S. economy to grow by 5.6 percent in 2021, and moderately to 3.7 percent this year. The Chinese economy was estimated to grow 8.0 percent in 2021, and slow to 5.1 percent this year. As well, it was expected the Euro area economy to expand by 5.2 in 2021 and 4.2 percent in 2022.

"The world economy is simultaneously facing COVID-19, inflation, and policy uncertainty, with government spending and monetary policies in uncharted territory," stated David Malpass, World Bank Group President.