The World Bank (WB) and the International Monetary Fund (IMF) have warned that the ongoing global crisis will get worse over the next few years.
By the end of this year, the growth of the global economy will decrease to 3.2 per cent which is expected to slow further in 2023. However, inflationary pressures may ease in the coming years.
The matter was discussed on the second day of the 2022 annual general meeting of the International Monetary Fund (IMF) and the World Bank held in Washington DC, the capital of the United States.
According to the World Bank-IMF forecast as countries grapple with the fallout from Russia's invasion of Ukraine, spiralling cost-of-living and economic downturns.
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The world economy has been dealt multiple blows, with the war in Ukraine driving up food and energy prices following the coronavirus outbreak while soaring costs and rising interest rates threaten to reverberate around the globe.
This recession of the economy will be more pronounced in the coming year. The growth rate of the world economy will decrease from 6 per cent in 2021 to 3.2 per cent which will further decrease to 2.3 per cent in 2023.
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At this time, the growth of the developed world including Europe and America will decrease.
In response to the question of what will happen to Bangladesh in the coming days, World Bank Vice President Junaid Kamal Ahmad told “The Business Post” that if a country's growth slows down due to an economic shock, the poverty rate will increase.
“The amount of money reaching people should rise. Bangladesh is still at peace, nevertheless. This is why the government ought to start by examining how stable economic growth is achieved through attracting foreign investment,” he added.
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“The extraordinary spike in fuel costs does not bode well for the unstable commodity markets. However, inflation will decrease from 8.8 per cent in 2022 to 6.5 per cent in 2023. However, it is evident from economic realities that global economic growth will slow down,” IMF Economic Counsellor Pierre-Olivier Gourinchas said.
More than a third of the global economy is headed for contraction this year or next, and the three biggest economies –- the United States, European Union and China – will continue to stall, he warned.
