The world’s economy, according to the World Bank, is projected to recover and grow by 4 per cent this year.
The projected economic growth, the Bretton Wood institution notes, is based on the assumption that an initial COVID-19 vaccine rollout becomes widespread across the globe throughout the year.
In its January 2021 Global Economic Prospects, the World Bank however, warned that the projected 4 per cent recovery growth is likely to be subdued unless policy makers around the world move decisively to tame the pandemic and implement investment-enhancing reforms.
The global economy on the back of the Covid-19 pandemic contracted by 4.3 per cent in 2020. Aside the contraction in the global economy, the pandemic has also resulted in the deaths of over 1.8 million people globally and plunged millions into poverty.
The World Bank is of the view that, the pandemic will depress economic activity and incomes for a prolonged period.
The multilateral organization urged policy makers around the world to make rapid and widespread vaccine deployment and the controlling of the spread of the Covid-19 virus, their top near-term priorities.
To also support economic recovery, policy makers need to facilitate a re-investment cycle aimed at sustainable growth that is less dependent on government debt, the World Bank further noted.
“While the global economy appears to have entered a subdued recovery, policymakers face formidable challenges—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,” said World Bank Group President David Malpass.
“To overcome the impacts of the pandemic and counter the investment headwind, there needs to be a major push to improve business environments, increase labor and product market flexibility, and strengthen transparency and governance,” he added.
