The World Bank projected a five percent growth for emerging market and developing economies in 2021.
The January 2021 Global Economic Prospects report projected a return to global growth, but stated that risks would remain as economic activity and incomes were likely to stay low for an extended period.
It stated that although the global economy was emerging from the collapse triggered by the pandemic, the recovery was projected to be subdued.
“Global economic output is expected to expand four percent in 2021 but still remain more than five per cent below its pre-pandemic trend”, the bank said.
The financial institution said the pandemic had worsened the risks associated with a decade long wave of global dept accumulation.
It said debt levels had reached historic highs, making the global economy particularly vulnerable to financial market stress.
It said the heightened level of uncertainty around the global outlook highlights policy maker’s role in raising the likelihood of better growth outcomes while warding off worse ones.
“Limiting the spread of the virus, providing relief for vulnerable populations and overcoming vaccine related challenges are key immediate priorities”, the bank stated.
It noted that with weak fiscal positions severely constraining government support measures in many countries, an emphasis on ambitious reforms was needed to rekindle robust, sustainable and equitable growth.
The Punch, January 8, 2021
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