Solemn assessment: IMF forecasts, World Bank report

The global economy has avoided fears of a deep recession, with the IMF last week raising its forecast for global gross growth in 2024 to 3.2% from 2.9% in October. The IMF cited the fact that the global economy has been surprisingly resilient, weathering some negative impacts and “significant central bank interest rate hikes aimed at restoring price stability” and maintaining its growth momentum, largely thanks to developed countries. emphasized. The demand support from the US is leading the way. However, the foundation also notes that the gulf between the economic north and south is widening, observing: In these economies, growth is revised downward while inflation is revised upward. ” These poorest countries, including countries in Africa, parts of Latin America, the Pacific Islands, and Asia, have been hardest hit by the COVID-19 pandemic in terms of estimated production declines compared to pre-pandemic projections. He was injured and is struggling to recover. Compounding their predicament, these economies now face increasing debt service burdens and are unable to spend on much-needed public goods such as better education, health care, and social nets to improve food security. ability is severely impaired.

The World Bank, the IMF's twin development finance institution, said in a separate report that for the first time this century, half of the world's 75 poorest countries are experiencing widening income inequality with the richest economies. It pointed out that this represents a historical situation. “Reversal of development.” Indermit Gill, chief economist at the World Bank Group, said in a blog post on the financial institution's site:[the 75 poorest countries] It is home to a quarter of humanity, or 1.9 billion people, and 90% of those facing hunger and malnutrition. ” Even more distressing, the governments of at least half of these countries are nearly paralyzed, even though these countries are in the middle of what he might call a “lost decade.” Yet the rest of the world is “largely turning a blind eye,” Gill asserted. Due to debt hardship. The World Bank's chief economist cited the example of South Korea, China, and India as countries that have transitioned from being borrowers of low-interest loans from the World Bank's International Development Association to economic powerhouses that are today donors to IDA. emphasized that it is essential. Richer countries financially support the poorest countries. Given that the world needs to harness its full economic potential to achieve universal peace and prosperity, we cannot afford to turn our backs on a quarter of our people.