World Bank dims outlook for global economy amid Russia war
The World Bank has sharply downgraded its outlook for the global economy, pointing to Russia’s war against Ukraine, the prospect of widespread food shortages and concerns about the potential return of “stagflation” — a toxic mix of high inflation and sluggish growth unseen for more than four decades.
World Bank warns global economy may suffer 1970s-style stagflation
The global economy may be headed for years of weak growth and rising prices, a toxic combination that will test the stability of dozens of countries still struggling to rebound from the pandemic, the World Bank warned.washingtonpost.com
Pricey tortillas: LatAm's poor struggle to afford staples
No item is more essential to Mexican dinner tables than the corn tortilla. Months ago, García, 67, would buy a stack of tortillas weighing several kilograms to take home to her family every day. “Everything has gone up here,” she told The Associated Press while standing outside a tortilla shop.news.yahoo.com
Cash-strapped Sudan clears overdue payments to World Bank
The Sudanese government says it cleared all of its past-due repayments to the World Bank. Sudan's cabinet said in a statement Friday, March 26, 2021, that the repayments allow Sudan to resume normal relations with the World Bank after nearly 30 years of suspension. This development allows Sudan to resume normal relations with the World Bank after nearly 30 years of suspension, according to a statement released by Sudan's Cabinet. The World Bank said that by clearing its debts, Sudan will have access to nearly $2 billion in grants for poverty reduction and sustainable development. The Sudanese government said that it shall soon discuss with the World Bank the schedule for the disbursement of total grants of $2 billion over the next two years.
World Bank sees subdued recovery in 2021 and plenty of risk
FILE - In this Oct. 17, 2019 file photo, World Bank President David Malpass speaks during a news conference at the World Bank/IMF Annual Meetings in Washington. For 2020, the World Bank expects GDP in the United States to fall by 4.3% while it predicted a modest 2% increase in China. To combat the sharp downturn, the World Bank has made $160 billion available to help more than 100 countries protect the poor, support businesses and bolster the recovery. Malpass, in a briefing for reporters, said the World Bank was making available $12 billion to provide 1 billion COVID-19 vaccinations in poor countries. For all advanced economies, the World Bank predicted a drop of 5.4% in 2020 and a rise of 3.3% in 2021.
1 billion kids in developing nations may be out of school due to pandemic, says World Bank head
That's a particular problem in the developing world," Malpass said. "We think there are ...1 billion children out of school in the developing world waiting, really, for the recovery to take hold. While the pandemic-induced recession has eased in wealthy countries, Malpass said that has not been an experience shared across the world. "Apart from China, many of the developing countries are worse than had been earlier expected, so it's this unequal process of recovery going on," he said. There needs to be long-term solutions to help developing nations that have been set back by the pandemic, Malpass contended.cnbc.com
G-20 suspends poor nations' debt payments for 6 more months
International aid groups expressed disappointment that more debt relief isn't being provided by extending the moratorium on debt payments for a full year or by forgiving part of the debt rather than merely suspending payments. Some critics have also complained that China objected to portions of the debt relief plans that have been advanced. He said the goal will be to agree on a framework that goes beyond even the current debt suspension initiative. The United States is represented at the G-20 finance meetings by Treasury Secretary Steven Mnuchin and Federal Reserve Chairman Jerome Powell. They urged the G-20 nations to suspend debt payments at least through 2021.
World Bank approves $12B to finance virus vaccines, care
The World Bank said its COVID-19 emergency response programs are already reaching 111 countries. Citizens in developing countries also need access to safe and effective COVID-19 vaccines, it said. The International Finance Corporation, the private sector lending arm of the World Bank is investing in vaccine manufacturers through a $4 billion Global Health Platform, the World Bank said. The World Bank said it will draw on expertise and experience from its involvement in many large-scale immunization programs and other public health efforts. The funding also is meant to help countries access tests and treatments and to support management of supply chains and other logistics for vaccinations in developing countries, the bank said.
Up to 150 million could join extreme poor, World Bank says
Middle income-countries are expected to have 82% of the new extreme poor, including India, Nigeria and Indonesia. Most of the new extreme poor, more than 110 million even by the World Bank's baseline estimate, will be in South Asia and sub-Saharan Africa. Roughly a third of the newly extreme poor are expected to be in sub-Saharan Africa, between 26 million and 40 million. The World Bank estimates between 88 million and 115 million people could slip into extreme poverty this year, with another 23 million to 35 million in 2021. The report "offers no simple answers to these major challenges currently confronting the world, because there are not any,” the World Bank authors write.
World Bank president warns the global coronavirus recession will hurt poorer countries the most
The coronavirus pandemic may set back economic growth efforts in developing nations, World Bank President David Malpass told CNBC on Wednesday. Futher progress can be made on access to electricity, clean water and sanitation, Malpass said in a "Squawk on the Street" interview, "but the big worry is that we're moving backward because of the global recession." As a result of the pandemic, the world will likely experience its worst recession since the Great Depression, the International Monetary Fund said Tuesday. The world recession will be deep and that especially impacts poorer countries," Malpass said. The World Bank in early April approved a $1.9 billion funding program for developing countries to help support their response to Covid-19.cnbc.com
IMF says it's ready to mobilize its $1 trillion lending capacity to fight coronavirus
The International Monetary Fund on Monday said it "stands ready" to use its $1 trillion lending capacity to help countries around the world that are struggling with the humanitarian and economic impact of the novel coronavirus. "As a first line of defense, the Fund can deploy its flexible and rapid-disbursing emergency response toolkit to help countries with urgent balance-of-payment needs," IMF managing director Kristalina Georgieva said in a statement. "The Fund already has 40 ongoing arrangements both disbursing and precautionary with combined commitments of about $200 billion," she added. Georgieva wrote on the IMF's website that the lending could be used to aid its members, especially emerging and developing countries. She said the Fund's Catastrophe Containment and Relief Trust "can help the poorest countries with immediate debt relief, which will free up vital resources for health spending, containment, and mitigation.cnbc.com
Ex-Fed chair Janet Yellen: Coronavirus poses 'risk' to global economy, but previous epidemics had little influence
Former Federal Reserve chair Janet Yellen said during a Feb. 4 talk at George Washington University that while she sees the coronavirus posing a risk to the global economy, similar past epidemics only had modest long-term effects. The coronavirus is definitely "a potential influence on the global economy," Yellen said, adding that it seems certain to have a significant effect at least a quarter or two on Chinese growth. And because China is such a significant player in the global economy, there's bound to be "spillovers." Still, Yellen remains concerned. "To my mind, it is a clearly a source of uncertainty and risk to the global outlook."cnbc.com