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gross domestic product growth by 1.2 percentage points to 5.6%, and forecast sharply lower growth of 3.7% in 2022 and 2.6% in 2023. The report forecast growth in advanced economies declining to 3.8% in 2022 from 5% in 2021, and dropping further to 2.3% in 2023, but said their output and investment would still return to their pre-pandemic trend by 2023.
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Kose said the risks of a "hard landing" for developing countries were increasing given their limited options to provide needed fiscal support, coupled with persistent inflationary pressures and elevated financial vulnerabilities. Malpass described a "growing canyon" in growth rates between advanced and developing economies, which World Bank economists say could spark increased social tensions and unrest.
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While 59% of the world's population has received at least one dose of a COVID-19 vaccine, only 8.9% of people in low-income countries have received at least one dose, according to the Our World in Data website. "Policy support is being withdrawn and there is a multitude of risks ahead of us."ĬOVID-19 has caused more than 300 million reported infections worldwide and over 5.8 million deaths, according to data compiled by Reuters. "There is a pronounced slowdown underway," Kose said. Seventy percent of 10-year olds in low- and middle-income countries cannot read a basic story, up from 53%, he said.Īyhan Kose, author of the World Bank report, told Reuters the rapid spread of the highly contagious Omicron variant showed the continuing disruption caused by the pandemic, and said a surge that overwhelmed healthcare systems could knock up to an additional 0.7 further percentage point off the global forecast. "Developing countries are facing severe long-term problems related to lower vaccination rates, global macro policies and the debt burden," World Bank President David Malpass told reporters, citing troubling reversals in poverty, nutrition and health data and permanent impacts from school closures. The bank's latest semiannual forecast cited a big rebound in economic activity in advanced and developing economies in 2021 after contractions in 2020, but warned that longer-lasting inflation, ongoing supply chain and labor force issues, and new coronavirus variants were likely to dampen growth worldwide.
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