World Bank cuts global growth forecast for 2022 to 4.1%
Xinhua News Agency, Washington, January 11 (Reporter Xu Yuan Gao Climbing) The World Bank released the latest "Global Economic Outlook" report on the 11th, predicting that the global economy will grow by 5.5% in 2021 and 4.1% in 2022, both lower than previous forecasts. 0.2 percentage points.
The report said that due to the continuous spread of the new crown epidemic, the reduction of policy support in various economies and the persistence of supply chain bottlenecks, the global economic recovery momentum will slow down significantly, and the output of emerging market and developing economies is expected to remain significantly lower than the epidemic. previous level.
The report predicts that developed economies will grow by 5% in 2021 and 3.8% in 2022, down 0.4 and 0.2 percentage points respectively; emerging market and developing economies will grow by 6.3% in 2021 and 4.6% in 2022.
The World Bank predicts that the U.S. economy will grow by 5.6% in 2021, down 1.2 percentage points from its previous forecast; in 2022, it will grow by 3.7%, down 0.5 percentage points.
The euro zone economy will grow by 5.2% in 2021 and 4.2% in 2022.
Meanwhile, the World Bank expects China's economy to grow by 8% in 2021 and 5.1% in 2022.
The report pointed out that the global economy faces a number of downside risks, including the rapid spread of the mutated new coronavirus Omicron strain leading to a resurgence of the epidemic, soaring inflation expectations and financial pressures from record high debt levels.
At the same time, climate change could exacerbate commodity price volatility, posing challenges to emerging market and developing economies.
Given the limited policy space in emerging market and developing economies, these downside risks would "increase the likelihood of a hard landing".
The World Bank calls on economies around the world to strengthen cooperation, accelerate the equitable distribution of vaccines, take proactive measures to improve debt sustainability in the poorest economies, work to address climate change and intra-economy inequality, and introduce pro-growth policy measures to promote Green, resilient and inclusive development.
World Bank President Malpass said that global macroeconomic imbalances have reached an unprecedented level, income inequality between and within economies is widening, and the global economy is facing unprecedented uncertainty.
He called on the international community to strengthen coordinated actions and policy responses at the national level to achieve healthy growth in global economies.