Although the signals from the market on the edge of the economic crisis seem to be quite mixed, even after the quality of life and purchasing power have suffered a lot in the last year, the World Bank is issuing a very serious warning on the subject.
This week, in the latest conference given by World Bank President Ajay Banga, the official sounded an important alarm about the dire situation in which the world economy finds itself. On the bright side, Banga is optimistic that things could recover under ideal conditions, but even so, last month the monetary institution revised down its forecast for the pace of growth of the world economy this year, from 2.7% to 2.4%. The pullback was based on the worldwide tightening of monetary policy.
What’s next for the economic crisis, for the World Bank
“The reality is that the world economy is in a difficult situation. It has performed better than all expectations but that does not mean that there will not be more challenges”, said Ajay Banga on the occasion of the meeting of finance ministers and central bank governors of the G20 states, which is taking place in the city of Gandhinagar in India. “A forecast is not equal to a destiny. We can change destiny and this is what we should think about now”, added the official, according to Economedia.ro.
For reference, Ajay Banga was the CEO of Mastercard in the past and his transition to the World Bank occurred with the aim of transforming the World Bank especially in the sense of increasing its lending capacity. It also wants to revise the institution’s business model in order to combat climate change, pandemics, food insecurity and other crises, in addition to maintaining the traditional mission of fighting poverty.
For reference, if you never knew what the World Bank does, it is one of the most important resources of both funding and expertise or advice for developing countries.