File Name: world economic situation and prospects 2019 .zip
Send us an email at prospects worldbank. This page in: EN. Global Economic Prospects. Toggle navigation. The pandemic has exacerbated the risks associated with a decade-long wave of global debt accumulation.
The Outlook highlights, however, that growth has been less than inclusive. Only about a third of African countries achieved inclusive growth, reducing both poverty and inequality. Read more. Despite progress in recent decades, Africa still lags behind other developing regions in education and skill development. Policy actions should include measures to improve both the quantity and the quality of education and align education policy with labor market needs. To address inequality in education, the Outlook appeals for progressive universalism in education spending—setting high priorities for the poor and disadvantaged and for basic education, where social returns are highest. The Outlook shows that public expenditures on education and infrastructure are highly complementary, as investing in both has a much greater payoff than investing exclusively in just one.
COVID, which first emerged in the Chinese city of Wuhan in December , has killed more than 2 million people in at least countries and territories globally, according to the World Health Organization. Hence, the virus outbreak has become one of the biggest threats to mankind and left economic scars both in the real economy and the financial system. The upward revision in the IMF's growth forecast reflects better-than-anticipated growth, especially in the United States and the Eurozone, where economic activity began to improve after loosening lockdown restrictions, as well as indicators of a stronger recovery in the following months. However, the pandemic still caused an unprecedented collapse in the second quarter; consequently, this health crisis marks the worst economic collapse since the s Great Depression. Despite vaccine rollouts and accommodative stance of monetary policy as well as massive fiscal stimulus from governments, the IMF warned that the world economy still faces a downside risk and an uneven recovery until the coronavirus is successfully contained.
The world economy or the global economy is the economy of all humans of the world, referring to the global economic system which includes all economic activities which are conducted both within and between nations , including production , consumption , economic management , work in general, exchange of financial values and trade of goods and services. Beyond the minimum standard concerning value in production, use and exchange, the definitions, representations, models and valuations of the world economy vary widely. It is inseparable from the geography and ecology of planet Earth. It is common to limit questions of the world economy exclusively to human economic activity and the world economy is typically judged in monetary terms, even in cases in which there is no efficient market to help valuate certain goods or services, or in cases in which a lack of independent research, genuine data or government cooperation makes establishing figures difficult. Typical examples are illegal drugs and other black market goods , which by any standard are a part of the world economy, but for which there is by definition no legal market of any kind. However, even in cases in which there is a clear and efficient market to establish a monetary value , economists do not typically use the current or official exchange rate to translate the monetary units of this market into a single unit for the world economy since exchange rates typically do not closely reflect worldwide value, for example in cases where the volume or price of transactions is closely regulated by the government. Rather, market valuations in a local currency are typically translated to a single monetary unit using the idea of purchasing power.
Since it was first detected in China in December , the virus has spread across the globe. In efforts to contain the virus, many countries have introduced rigorous public health measures that significantly limit social contact. The purpose of these measures is to slow the spread of the virus and avoid overwhelming the health systems. At present, it is difficult to say how long the public health measures will need to remain in place and when society will return to normality. In this context, the degree of uncertainty surrounding the future development is currently very high because data is scarce for the brief span of time since the crisis began and because of the exceptional circumstances. These are based on different assumptions regarding the scale and duration of the restrictions as a result of the virus and the speed of the subsequent recovery.
First it was a V, then a U. Pessimists posited the possibility of a L, optimists landed on a W. Others got more creative still — like a gentle tick mark or the square-root symbol. The global economy is engulfed in a health crisis. At one end of the policy response spectrum has been an approach that has sought to minimize the economic damage of COVID by allowing the virus to go through the population relatively unchecked, with the consequence of such an approach being a poorer health outcome with stress on the health system.
Global growth is expected to remain at 3. The global economy is facing a confluence of risks, which could severely disrupt economic activity and inflict significant damage on longer-term development prospects. These risks include an escalation of trade disputes, an abrupt tightening of global financial conditions, and intensifying climate risks. In many developed countries, growth rates have risen close to their potential, while unemployment rates have dropped to historical lows. Among the developing economies, the East and South Asia regions remain on a relatively strong growth trajectory, amid robust domestic demand conditions. Beneath the strong global headline figures, however, economic progress has been highly uneven across regions.
Dit artikel is ook beschikbaar in het Nederlands. March 12, , by Hugo Erken et al. We expect global economic growth to be 1. We have sharply adjusted our growth forecast for to the downside as a result of the outbreak of the recent coronavirus, officially named COVID see figure 1. We have also calculated a risk scenario in which the virus spreads further see box 1. Under this scenario, economic growth in China and the global economy will fall to 0.