The World Bank in its Global Economic Prospects report released on Tuesday said economic growth is expected to slow worldwide due to the ongoing COVID-19 pandemic, reduced government funding and ongoing disruptions in global supply chains. .
Despite an unexpectedly strong recovery last year, central banks are now reducing their support for economic growth and looking to raise interest rates to cope with higher prices. Businesses have struggled to find raw materials and supplies to meet consumer demand and, especially in the US, businesses have struggled to fill job openings.
The World Bank projected that the US economy will grow 3.7 percent this year, up from 5.6 percent last year, while worldwide growth is expected to fall from 4.3 percent last year to 4.1 percent in 2022.
China, the world’s second-largest economy, is expected to decline from 8 percent last year to 5.1 percent this year.
The 19 European countries sharing the euro currency are collectively expected to grow at 4.2 percent, down from 5.2 percent in 2021. Japan is expected to grow 2.9 percent from last year’s 1.7 percent.
Developing and emerging economies are projected to grow at 4.6 per cent, up from 6.3 per cent in 2021.
Since COVID-19 began, the World Bank has committed more than $157 billion to fight the effects of the pandemic, according to its website. $12 billion was approved for the purchase and distribution of COVID-19 vaccines, tests and treatments to developing countries. The COVID-19 Response Program was launched in April 2020 to help investors deal with the pandemic.
The arrival of the pandemic slowed global economic output and caused the world economy to shrink by 3.4 percent in 2020.
The World Bank also approved a $20 million grant package in 2021 as part of its response project.
“The world economy simultaneously faces COVID-19, inflation and policy uncertainty, with government spending and monetary policies in unknown territory,” said World Bank President David Malpass.
The Associated Press contributed to this report.