World Bank urges to invest in sustainable development projects
According to the World Bank’s report Global Economic Prospects, several emerging economies faced serious financial problems in the past year.
Global economic growth paces will be weaker in 2019, partly caused by the reduction in global trade and investments. These are the World Bank’s forecasts. Its experts warn of the unfavorable outcome of the trade wars and increasing natural disasters, and the growth in international debt, UN News informs.
“In early 2018, the global economy ran full, however, the paces reduced within the year, leading to a more complex situation in 2019,” according to the World Bank’s representative Kristalina Georgieva.
She is concerned that the economic and financial difficulties in emerging countries can undermine the efforts in combatting the poverty. In this connection, the World Bank Executive Director urges to actively invest in sustainable development projects for the sake of all members of society.
According to the World Bank’s report Global Economic Prospects, several emerging economies faced serious financial problems in the past year. In these difficult conditions, their economic growth paces will not see any changes in 2019. The economic recovery of the commodity-dependent states will be likely slower than expected, there will be even reduction in economic growth paces of certain countries.
The situation of the world economy is exacerbated by the fact that the central banks of rich states close down financial programmes that once stimulated the prolonged recovery after the crisis started a decade ago. The economic development also slows down the low-intensity disputes that can exacerbate this year. In addition, following the growth in debts, certain poor countries become dependent on global interest rate rise or exchange rate fluctuations to a larger extent.
Over the last years, many countries with low income have received access to new financing sources, including private financial institutions outside the Paris Club, that connect the developed creditor States, leading to the debt growth in the recipient states.
Another problem mentioned in the updated report’s is employment in the informal economy. In some emerging economies, this sector accounts for around one-third of GDP and approximately 70% of overall employment.
The World Bank’s report Global Economic Prospects is published twice a year, in January and June.