WASHINGTON - The World Bank has issued a warning about a global economic slowdown, projecting that the world economy will grow at a modest rate of 2.4% in the current year. This represents a slight decline from the 2.6% growth recorded in the previous year. The forecasted slowdown is attributed to a combination of geopolitical tensions and a downturn in investment activities.
In its latest report, the World Bank highlighted several factors contributing to the subdued economic outlook. Advanced economies are expected to see growth of only around 1.2%, while emerging markets and developing nations are predicted to experience growth rates below 4%. This is a notable shift from past trends where emerging economies often displayed more robust growth figures.
One of the key focal points of the report is China, which is projected to encounter a considerable slowdown in its economic expansion compared to last year's performance. The World Bank pointed to several challenges facing the Asian giant, including a decline in consumer spending and structural issues such as an ageing population and high levels of debt.
The broader implications of these projections are significant, with the World Bank suggesting that the global economy could be entering a "decade of missed opportunities." This period may be characterized by the weakest growth since the 1990s for most countries.
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