Business cycle World Bank: Economic growth slows this year, creditors of poorest countries need to be flexible

World Bank according to a recent forecast, the growth rate of the world economy will slow significantly this year.

According to a recent economic forecast, the growth rate of the world economy will slow to 4.1 per cent this year from a recovery of 5.5 per cent last year. The forecast is reported by news agencies AFP and Reuters, among others.

The World Bank warns that the rapid spread of the coronavirus’ own micro – variant could have a detrimental effect on the economic situation, as well as exacerbating labor shortages and continuing supply chain disruptions.

Factors slowing economic growth also include a possible rise in inflation expectations.

If the risks materialize, the growth rate of the global economy could slow to 3.4 percent this year.

World Bank director general David Malpass raises concerns about the severity and severity of the coronary pandemic in poor countries.

“We are seeing worrying twists and turns in poverty, nutrition and health. Long school closures will also have a lasting impact, ”Malpass said in a report.

World Bank forecasts Ayhan Kosen according to the omicron variant, less restrictive restrictions have been imposed than at the beginning of the pandemic, which may ease its impact on the economy.

“If [omikronvariantti] as the number of infections remains high and the burden on health care remains high, the growth rate of the global economy will slow down, ”Kose tells AFP.

The World Bank is also concerned that vaccination programs in lower-income countries are progressing much more slowly than in rich countries.

In addition, the World Bank stresses that the debt levels of the poorest countries are in a worrying state and that lenders need to be prepared for debt restructuring. Borrowing by low-income and poor countries accelerated during the pandemic, and several countries have even plunged into insolvency.