The World Bank, Washington-headquartered sister-organization of IMF (International Monetary Fund) primarily engaged in providing loans and grants to developing and emerging market economies, said at its semi-annual forecast on Tuesday that a pandemic-battered global economy would likely to grow by 4 per cent this year following a contraction of 4.3 per cent in 2020, nonetheless, the World Bank had also cautioned that a persistent spike in pandemic cases alongside a delay in distributing pandemic vaccines could restrain the recovery to just 1.6 per cent.
In point of fact, latest semi-annual forecast of World Bank on global economic growth comes over the heels of a sharp rise in pandemic cases across the globe, while health experts had yet to address a number of more contagious variants of pandemic-pathogen in UK, South Africa and Nigeria.
Nevertheless, the Bank also said a combined GDP (Gross Domestic Product) of emerging market alongside developing economies including China, would more likely to grow by 5 per cent this year following a contraction of 2.6 per cent in 2020, while excluding China, emerging and developing countries would witness an expansion of 3.4 per cent in 2021 following a shrinkage of 5 per cent last year.
fallout was less severe than expected in '20, says World Bank
On top of that, the World Bank’s semi-annual Global Economic Prospects report released earlier in the day came up with a shimmering ray of hope for a number of major G20 economies as the report was quoted saying that a pandemic-driven drawdown in financial activities appeared to be less severe than prior forecasts in 2020, nonetheless, the Washington-based world’s largest lender had also cautioned that a global-scale economic recovery was largely subdued and subject to considerable extent of downside momentum.
Nonetheless, according to the semi-annual forecast, although the pandemic could have decade-long impact on global economy with developing and emerging market countries bearing the heaviest brunt, a successful containment of pandemic outbreak alongside a quicker inoculation program would step up the global growth up to 5 per cent this year.
Meanwhile, heavily betting on a successful pandemic vaccination program across the globe this year, the World Bank’s semi-annual forecast said, “The near-term outlook remains highly uncertain. A downside scenario in which infections continue to rise and the rollout of a vaccine is delayed could limit the global expansion to 1.6% in 2021.
” GDP per capita had dropped more than 90 per cent in emerging and developing economies last year with tens of millions relapsing to extreme poverty, while a sweeping decline in investors’ confidence alongside a sky-high unemployment rate might spur up global poverty in a longer-term outlook, warned the Bank.