The risk of a hard landing for large parts of the global economy is rising as countries struggle to cope with the triple threat of Covid-19, inflation and higher interest rates, the World Bank has said.
In its half-yearly forecasts, the Washington DC-based bank said it expected a “pronounced slowdown” in growth in the next two years, with the less well-off parts of the world especially hard hit.
David Malpass, the World Bank’s president, called for action to reduce the debts of poor countries and said he was “very worried” about the permanent scarring of development caused by the pandemic. He 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 for developing countries.”David Malpass, President of the World Bank Group