GLOBAL ECONOMIC PROSPECTS : ESSAY

The World Bank warns of uneven global recovery leaving all of the poor nations behind. Global economy is now expected to grow 5.6 percent this year.

Washington : Fueled by widespread Covid-19 vaccinations in advanced nations, the world economic recovery has picked up speed, but the upbeat outlook obscures a worrying picture in poor nations, the World Ban said on Tuesday.

The global economy is now expected to grow 5.6 percent this year, 1.3 points faster than projected in January - the fastest post-recession bounceback in 80 years, according to the latest Global Economic Prospects [GEP] report.

However, the bank warns that many countries, especially poor nations, are being left behind and will take years to return to their pre-pandemic levels.

''The near term resumption of growth cannot make up for the misery that the pandemic has inflicted on the poorest and its disproportionate impact on vulnerable groups,'' World Group President David Maipass said.

'' Globally coordinated efforts are essential to accelerate vaccine distribution and debt relief, particularly for low- income countries.''

And while inflation is not seen as a major factor, rising prices create another challenge for policymakers, especially in emerging markets as they try to restore order in their economies and manage rising debt levels.

The World Bank cut its forecasts for about 40 percent of emerging markets and developing nations, and without the boost from China's massive economy, those countries will expand by only 4.4 percent.

The report also cuts the forecast for low - income countries for this year and next, and the group is expected to expand by only 2.9 percent, the slowest growth in two decades other than 2020.

''By the end of this year, more than 100 million people are expected to have fallen back into extreme poverty,'' the World Bank cautions.

''This is the tale of two recoveries,'' World Bank economist Ayhan Kose told AFP., noting that most economies will not return to pre-pandemic levels until 2023 and beyond. [AFP]