World Bank throws fresh light on Global GDP numbers over Covid variants

India's GDP for 2023
Representative Image

The new Covid variants, rising inflation, debt and income inequality are likely to cause a drop in overall global GDP from 5.5 per cent in 2021 to 4.1 per cent in 2022, as per a World Bank report.

After a strong rebound in 2021, the global economy will again face a slowdown over new variants’ threat. Moreover, rising inflation, global debt and income inequality will also pose hurdles in the economic recovery. The World Bank’s latest report, Global Economic Prospects said.

“The world economy is simultaneously facing COVID-19, inflation, and policy uncertainty, with government spending and monetary policies in uncharted territory. Rising inequality and security challenges are particularly harmful to develop countries,” said World Bank Group President David Malpass.

He further went on to say that it will require concerted international action and thorough national policy measures to put the global economy back on the growth path.

The World Bank Tuesday kept its forecast for India’s GDP growth for FY22 at 8.3 per cent.

It also upgraded its forecast for FY23 and FY24 at 8.7 per cent and 6.8 per cent respectively.

The World Bank’s projections come as India’s government advance estimates projected India’s GDP to grow at 9.2 per cent in the current financial year.

It further provided forecasts for the economic growth in the US, the Euro area and China.

It also warned of high debt levels, rising income inequality and new Covid-19 variants that pose fresh threatens to the recovery in developing economies.

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