The so-called "speed limit" of the global economy, or the maximum speed at which economies can grow without sparking inflation, will decline to a 30-year low of just 2.2% by 2030, the World Bank said in a new report on Monday
WASHINGTON (Pakistan Point News / Sputnik - 27th March, 2023) The so-called "speed limit" of the global economy, or the maximum speed at which economies can grow without sparking inflation, will decline to a 30-year low of just 2.2% by 2030, the World Bank said in a new report on Monday.
"The report documents a worrisome trend: nearly all the economic forces that powered progress and prosperity over the last three decades are fading. As a result, between 2022 and 2030 average global potential GDP growth is expected to decline by roughly a third from the rate that prevailed in the first decade of this century � to 2.2% a year," the World Bank said in a press release summarizing the report.
Developing economies meanwhile will face a decline in their GDP speed limit from 6% between 200 and 2010 to just 4% for the remainder of this decade, the release said.
