World Bank warns of 'lost decade' as economic growth slows after COVID-19 and Ukraine war

(Patria) - The potential growth of the global economy by the end of this decade has slowed to the weakest in the last 30 years, the World Bank announced, citing the consequences of the coronavirus pandemic and the conflict in Ukraine, writes Bloomberg.

After the millennium began with faster global economic growth, it should slow down between 2022 and 2030 to 2.2 percent annually, the World Bank announced. The global economy could be lost this decade, said Indermit Gill, chief economist of the World Bank.

"The continued decline in potential growth has serious implications for the world's ability to tackle an ever-growing set of challenges unique to our time - stubborn poverty, income inequality, and climate change," he said.

Analysts note that things could worsen, with a steeper decline in potential growth if a global financial crisis or recession materializes.

The World Bank appealed to governments around the world to take the necessary steps to stimulate economic growth.