The World Bank has said in its semi-annual Global Economic Prospects report. Output will likely expand 4% in 2021, down from a 4.2% the Bank had forecast in its June report, before slowing to 3.8% in 2022.<\/p>\n
That\u2019s the optimistic scenario. What do they have for the bears? <\/strong>An \u201cexceptional level of uncertainty\u201d caused by the trajectory of the pandemic and the global vaccine rollout mean that growth could come in at just 1.6%. “In a more severe downside scenario including widespread financial stress, global growth could even be negative in 2021,” it said.<\/p>\n After 2020 any growth is welcome \u2014 but the threat of a \u201clost decade\u201d is real:<\/strong> Ayhan Kose, the bank\u2019s acting vice president for equitable growth and financial institutions, told the Wall Street Journal that the actions of policymakers in the months ahead will shape the decade to come. \u201cIf history is any guide, unless there is substantial reform, we think the global economy is headed for a decade of disappointing growth outcomes,\u201d he said. \u201cThe world can\u2019t wait for everyone to be vaccinated to inoculate the global economy against another lost decade for growth \u2026 that means policy makers need to act and act aggressively to get ahead of the pandemic.\u201d<\/p>\n For Egypt,<\/strong> the report predicts economic growth to slow down to 2.7 percent in FY2020\/2021, down from 3.6 percent in 2020, and to bounce back to 5.8 percent in 2022.<\/p>\n The report attributed the economic growth contraction in FY20202021 to the collapse in tourism, gas extractives and a slowdown in other key sectors such as manufacturing.<\/p>\n The economy has avoided sliding into contraction thanks to reforms, solid policy buffers, \u201cresilient\u201d consumption patterns, international help, and mega-projects, but nonetheless has been \u201cheavily disrupted\u201d by covid-19. The collapse in tourism, natural gas extractives, and manufacturing dampened growth which will remain subdued until FY2021-2022 when the bank forecasts a return to pre-pandemic growth levels of 5.8%.<\/p>\n","protected":false},"excerpt":{"rendered":" The World Bank has said in its semi-annual Global Economic Prospects report. Output will likely expand 4% in 2021, down from a 4.2% the Bank had forecast in its June report, before slowing to 3.8% in 2022.<\/p>\n","protected":false},"author":4,"featured_media":320127,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[24,33],"tags":[64],"class_list":["post-320428","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-development-partners","category-main","tag-world-bank"],"yoast_head":"\n