The World Bank, a major financial body, recently forecasted a notable decline in global economic performance from 2020 to 2024.
This period is expected to see the weakest growth in three decades.
In their latest report, released on January 9, 2024, the World Bank highlighted this downturn.
The focus was on Gross Domestic Product (GDP) growth. For 2024, the growth rate is predicted to be just 2.4%.
This rate falls short of the 2.6% growth in 2023. It marks a third year of gradual economic decline.
The World Bank emphasizes the need for reform. It argues that changes can boost investment and strengthen financial policies.
Indermit Gill, the institution’s Chief Economist, gave a stern warning. He said that without major changes, the 2020s might be known as a decade of missed chances.
The report also looks at the impact of this slowdown on climate change efforts. The World Bank suggests a solution.
By increasing investment per person by 4% over six years, developing nations could switch to cleaner energy. This move could combat climate change effectively.
Additionally, the report sheds light on the role of commodities in economies. It provides advice to developing countries.
These nations can avoid cycles of economic ups and downs. The report recommends controlled government spending and flexible currency exchange rates.
It also suggests allowing the free movement of international capital.
Overall, the World Bank’s report connects economic performance with broader global challenges.
It underlines the importance of timely reforms and investments. These steps are crucial for sustainable growth and combating climate change.