The World Bank expects that the global economy will expand four percent in 2021. The pandemic has caused a heavy toll of deaths, plunged millions into poverty and has also been the reason for one of the deepest recessions in the world.
As the COVID-19 vaccine started rolling out in many countries, World Bank is expecting recovery in the percentage of global economy. Even though an increase in the percentage is expected, it will still remain more than five per cent below its pre-pandemic trend.
“To overcome the impacts of the pandemic, there needs to be a major push to improve business environments, increase labour and product market flexibility and strengthen transparency and governance. Making the right investments now is vital for the recovery”, said World Bank President David Malpass.
In its Global Economic Prospects report, the World bank said Economies that depend heavily on tourism and travel have been especially hard hit, that includes the Maldives, Nepal, and Sri Lanka. While the global economy appears to be recovering, policy makers will face formidable challenges in public health, debt management, budget policies, central banking and structural reforms.