
World Bank: Global economy’s slower growing pace impacts poverty
New Delhi: Slower growth of the world economy cannot bring relief to the poorest nations, the World Bank has said. The bank expects the world economy to expand by 2.7 percent in 2025 and again in 2026. While the economy has remarkably remained consistent in 2023- 2024 it is also lackluster. The growth has been 0.4 percent below the average of 2010- 2019, the media reported.
The World Bank, in a report, noted that growth has been decelerating for years in the developing world from a robust average of 5.9 percent per annum in the 2000s to 5.1 percent in the 2010s to just 3.5 percent in the 2020s. Excluding China and India, these developing countries lag behind the world’s wealthiest nations in per-capita economic growth.
The next 25 years might be difficult for the developing nations compared to the previous 25 years, World Bank Chief Economist Indermit Gill said in the report. The world’s poorest countries with per capita incomes below USD 1,145 grew just 3.6 percent in 2024 because of escalating conflict and violence in places like Gaza and Sudan.
The Bank said the potential of poor countries’ rebound and growth is about 5.7 percent this year and 5.9 percent in 2026. While the economy of the United States expects strong growth due to strong consumer spending, Europe to slower. The second biggest growing economy this year will be the Chinese followed by the current largest growing economy, India. The World Bank’s forecasts assume no major shifts in trade or budget policies.