Global growth decelerated markedly last year—a post-crisis low—with key indicators, such as industrial production and trade, declining in parallel. Growth is expected to pick up in 2020, partly reflecting continued support from monetary policy. However, the recovery will hinge on the rebound of a small number of large emerging market and developing economies (EMDEs), most of which are coming out of deep recessions or sharp slowdowns. Even so, EMDE growth will be far from sufficient to make substantial progress in poverty reduction.
1. A post-crisis low in 2019
By most measures, 2019 was the worst year for the global economy since the global financial crisis , with global growth reaching a post-crisis low of 2.4 percent.
2. A tepid pickup in 2020
Global growth is projected to edge up to 2.5 percent in 2020, with advanced economies slowing to 1.4 percent and EMDEs recovering to 4.1 percent.
3. An evolving macro policy landscape
In response to subdued activity, macroeconomic policy became more stimulative last year. While monetary policy is expected to remain accommodative, fiscal support is anticipated to fade this year.
4. A fragile rebound in EMDEs
The recovery will not be broad-based. Instead, it will mostly be driven by a pickup in a small number of large EMDEs emerging from deep recessions or sharp slowdowns.
5. Insufficient per capita growth to reduce poverty
Per capita growth has been insufficient to meet poverty alleviation goals in Sub-Saharan Africa—the region where most low-income countries are clustered and most of the world’s poor live.
Report: Global Economic Prospects
Global Growth: Modest Pickup to 2.5% in 2020 amid Mounting Debt and Slowing Productivity Growth
Thank you for your world bank analysis, and now that I've read it, I have two questions...
1. What do you think an increase of Decentralized Social crypto and platforms could do to help the world economy especially in LIC and Developing Nations?
2. Do you think if governments around the world focused on building up remote work that more money could pass between nations and build up the world economy faster than predicted?
If you think my questions are irrelevant, please tell me what you think the real solutions are to lower inflation, get money flowing throughout the world, and get us out of this downturn most expediently.
Thank you for your great work, and analysis, please help me understand some solutions.
PowerTies Consulting Group