FX.co ★ Global economy may face weakest growth in three decades

Citing forecasts from World Bank experts, The Washington Post has reported that the global economy's growth prospects could be the weakest in 30 years. In the next five years, the world economy may decline dramatically. Preliminary estimates suggest that the world will see the weakest economic growth opportunities in the last 30 years. Regarding the global GDP, this indicator is also poised to sag amid turbulent times. The World Bank believes it is likely to continue its downturn. In recent years, the global economy's growth rate has significantly slowed down, mainly due to combating soaring inflation worldwide. In addition, governments have been grappling with the aftermaths of inflationary and financial crises. In such a scenario, achieving the sustainable development goals, which leaders of 193 countries are committed to, becomes more unlikely. These goals were agreed upon during a UN meeting in 2015. Against this backdrop, economists emphasize the doubts about achieving zero poverty on a global scale. According to Ayhan Kose, the Deputy Chief Economist at the World Bank, the situation is not encouraging. Currently, 25% of the population in developing countries is poorer than they were in the pre-pandemic period. The problem is exacerbated by the continuing rise in prices for essential goods and logistics services. Earlier, Bloomberg reported that an additional threat to the world economy in 2024 could be the potential onset of a war over Taiwan. Analysts do not rule out the possibility of Chinese authorities using force. However, resolving the territorial issue through force could provoke a confrontation with the US. In such a situation, the total damage to the global GDP could reach a staggering $10 trillion. Bloomberg asserts that this scenario may bring the world to the brink of disaster, posing a far greater danger to the global economy than the consequences of the pandemic and the Russia-Ukraine conflict.