The World Bank will today host their “Growth in the Time of Crisis: What’s Ahead for Developing Economies” event to discuss reforms and sustainable policies for broader global economic growth during and after the coronavirus pandemic.
According to the World Bank, global growth is set to reach a record breaking 5.6% in 2021. However, the growth disparity between developing and developed countries is stark. Nations have suffered stagnation to differing degrees depending on their existing health infrastructure or healthcare access inequalities, emergency preparedness and the resilience of the economy. Only one-third of emerging economies are expected to recover to their pre-pandemic per capita income levels by 2022. Recovery is in part hindered by immense debt many developing states are accruing as fiscal payments to the IMF and World Bank have been rerouted to emergency response efforts.
Between 2020 and 2021, the World Bank committed $157 billion to addressing the economic effects of the pandemic and created a debt-suspension program for the world’s poorest countries. Still, post-pandemic inclusive growth may require more radical efforts by multilateral institutions. Facilitating a balanced economic recovery from COVID-19 will likely require additional debt forgiveness and long term collaborative investment in global health infrastructure.
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Acadia is an analyst on the Current Developments team and regular contributor to the Daily Brief. She focuses on authoritarianism and security in the Middle East.