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On Tuesday, the World Bank said in its Global Economic Prospects report that worldwide economic growth is expected to slow due to continuing COVID-19 pandemic, a reduction in government economic support, and ongoing bottlenecks in global supply chains. The central banks are now reducing their support for economic growth and are considering raising interest rates to efficiently combat higher prices, in spite of an unexpectedly strong recovery last year. Businesses have struggled to find raw materials and supplies to meet consumer demand, especially in the US, businesses have struggled to fill job openings. It is important that the World Bank projected that the US economy will grow 3.7% this year, down from 5.6 % last year.

However, worldwide growth is expected to fall from 4.3% last year to 4.1% in 2022. Point to be noted that China is the world’s 2^nd biggest economy, which is expected to see growth decelerate from 8% last year to 5.1% this year. The 19 European countries that share euro currency are expected to grow collectively 4.2%, down from 5.2% in 2021. Japan is expected to grow 2.9%, up from last year’s 1.7%. Developing and emerging economies are estimated to grow 4.6%, down from 6.3 % in 2021. The World Bank has committed over $157 billion to fight the impacts of the pandemic since the start of the Covid-19 pandemic.

It is noteworthy that developing countries were approved $12 billion for the purchase and distribution of Covid-19 vaccines, tests, and treatments. The Covid-19 Response Program was launched in April 2020 to help investors tackle the pandemic. The arrival of the pandemic slammed global economic output and the world economy shrank by 3.4% in 2020. The World Bank also approved a $20 million grant package as a part of its response project in 2021. The President of World Bank, David Malpass said the world economy is simultaneously facing Covid-19, inflation, and policy uncertainty, with government spending and monetary policies in uncharted territory.