The World Bank allowed a "lost decade" in the global economy

The global economy could be entering a "lost decade," said Indermit Gill, chief economist and senior vice president for development economics at the World Bank, according to the organization's website.

“The continued decline in potential growth has serious implications for the world’s ability to address a growing array of challenges unique to our time—chronic poverty, income disparities and climate change,” Gill said.

However, this decline can be dealt with, the economist said. According to him, the authorities should stimulate labor, increase productivity and stimulate investment.

The World Bank has released a report, Long-term Growth Prospects Falling: Trends, Expectations and Policies. it notes that in 2022-2030 there will be a decrease in global potential GDP growth to 2.2% per year, which is one third less than it was in 2000-2010s. For developing countries, it is expected to fall from 6% in the first decade of the 21st century to 4% by 2030. “This decline will be much steeper in the event of a global financial crisis or recession,” the report noted.

In this regard, the organization called on states to take a course on “sustainable growth-oriented policies”. In this way, an increase in the level of global potential GDP growth to 2.9% can be achieved.

Other global financial organizations are also talking about the alarming situation in the global economy. For example, the HEAD of the International Monetary Fund, Kristallina Georgieva, previously drew attention to the increased risks to financial stability due to rate increases - this happens in order to fight inflation. According to Georgieva, such tactics "inevitably generate shocks and vulnerabilities."

The head of the Central Bank of RUSSIA, Elvira Nabiullina, noted in December that she feared a more significant cooling of the global economy than was envisaged in the base scenario of the regulator.