The global economy’s “speed limit” is set to fall to a three-decade low by 2030, the World Bank has said.
The bank, in its report titled “Falling Long-Term Growth Prospects: Trends, Expectations, and Policies” said the global potential growth rate, the maximum rate at which an economy can grow without igniting inflation, is expected to fall to a three-decade low over the remainder of the 2020s.
The report offers the first comprehensive assessment of long-term potential output growth rates in the aftermath of the COVID-19 pandemic and the Russian invasion of Ukraine. It introduced the world’s first comprehensive public database of multiple measures of potential Gross Domestic Product (GDP) growth covering 173 economies from 1981 through 2021.
