Nearly all global economic forces that have driven progress and prosperity over the past three decades are fading. “A worrying trend. There could be a lost decade in the making for the global economy,” says a World Bank report.
As a result, average global economic growth between now and 2030 is expected to decline by about a third compared to the pace of the first decade of this century. This equates to a decrease of more than 2 percent in growth per year.
For emerging economies, growth is slowing, from 6 percent a year between 2000 and 2010 to 4 percent a year for the rest of this decade. “These declines would be much stronger in the event of a global financial crisis or recession,” the World Bank said.
According to the institute, the continued decline in growth has “serious consequences” for the ability to tackle growing problems such as persistent poverty, income disparities and climate change. “But this decline is reversible,” adds the World Bank. This requires policies that “encourage work, increase productivity and accelerate investment.”