World Bank Warns of ‘Lost Decade’ as Potential Growth Slows
- World’s potential economic growth battered by Covid, war
- Development bank pushes focus on productivity, labor supply
The World Bank Group headquarters in Washington, DC.
Photographer: Andrew Harrer/BloombergThis article is for subscribers only.
The global economy’s potential growth through the end of the decade has slowed to the weakest in 30 years, the World Bank said, citing fallout from the coronavirus pandemic and the conflict in Ukraine.
Having started the millennium on a faster trajectory, the global economy’s “speed limit” — or the highest long-term rate at which it can grow without triggering inflation — is set to slow between 2022 and 2030 to 2.2% a year, the organization said in a report released Monday.