Published 09 March 2021 | 1 minute read
This edition of Global Economic Prospects makes looks into the challenges policymakers face — in public health, debt management, budget policies, central banking and structural reforms — as they try to ensure that this still-fragile global recovery gains traction and sets a foundation for robust growth and development in the longer run.
Following a collapse last year caused by the COVID-19 pandemic, global economic output is expected to expand 4 percent in 2021 but still remain more than 5 percent below pre-pandemic projections.
According to the report, global growth is projected to moderate to 3.8 percent in 2022, weighed down by the pandemic’s lasting damage to potential growth. In particular, the impact of the pandemic on investment and human capital is expected to erode growth prospects in emerging market and developing economies (EMDEs) and set back key development goals. The global recovery, which has been dampened in the near term by a resurgence of COVID-19 cases, is expected to strengthen over the forecast horizon as confidence, consumption, and trade gradually improve, supported by ongoing vaccination.
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Author
World Bank Group
