The World Bank has warned that said that the global outlook remains subdued by historical standards despite an improvement in near-term prospects.
In a new report, the bank stated that in 2024-25, growth is set to underperform its 2010s average in nearly 60 percent of economies, comprising over 80 percent of the global population.
According to the global lender, “Downside risks predominate, including geopolitical tensions, trade fragmentation, higher-for-longer interest rates, and climate-related disasters.
“Global cooperation is needed to safeguard trade, support green and digital transitions, deliver debt relief, and improve food security.”
To fasttrack the recovery, the Washington based lender noted that in emerging markets and developed economies, public investment can boost productivity and catalyze private investment, promoting long-run growth.
“Comprehensive fiscal reforms are essential to address ongoing fiscal challenges in small states, including those arising from heightened exposure to external shocks,” it added.
