Washington, Jan 11 (FN Bureau) Global growth is projected to slow through the next two years, decelerating from 5.5 per cent in 2021 to 4.1 per cent in 2022 and 3.2 per cent in 2023 amid the spread of Covid-19 variants, inflation and debt, the World Bank’s Global Economic Prospects report said on Tuesday. “Following a strong rebound in 2021, the global economy is entering a pronounced slowdown amid fresh threats from Covid-19 variants and a rise in inflation, debt, and income inequality that could endanger the recovery in emerging and developing economies … Global growth is expected to decelerate markedly from 5.5 per cent in 2021 to 4.1 per cent in 2022 and 3.2 per cent in 2023 as pent-up demand dissipates and as fiscal and monetary support is unwound across the world,” the World Bank said.
Economic growth in Europe and Central Asia will slow to 3 per cent in 2022 and decline further to 2.9 per cent in 2023, the World Bank said. “Growth in ECA is forecast to slow to 3 percent in 2022 — about half the pace in 2021 — as tighter macroeconomic policy and recurrent Covid-19 outbreaks, including from Omicron, weigh on demand. Regional growth is forecast to continue to ease in 2023, reaching 2.9 per cent, as fiscal support continues to be withdrawn,” the report said. The US economic forecast for 2022 has been revised downward to 3.7 per cent, while the forecast of 2023 was adjusted slightly upward to 5.6 per cent, the report said. “Growth is expected to slow to 3.7 per cent in 2022 and 2.6 per cent in 2023 as excess savings are spent, support from fiscal and monetary policy wanes, and supply bottlenecks gradually dissipate,” the World Bank said. The World Bank also revised downward its projection for US growth in 2021 to 5.6 per cent, compared to an earlier projection of 6.8 per cent.