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.
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.
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.