MOSCOW, Mar 28 The world economy may be on the verge of a new global crisis, so fears of a decade lost for it are justified, said an independent expert in industry and energy Leonid Khazanov.
According to the updated forecast of the World Bank, from 2022 to 2030, the average potential growth rate of global GDP will be 2.2% per year. Potential global GDP growth could be boosted by 0.7 percentage points to an average annual rate of 2.9% if countries adopt sustainable, growth-oriented policies.
For the global economy, said Indermit Gill, chief economist and World Bank senior vice president for development economics, a lost decade is emerging. Khazanov agreed with the concerns of the representative of the international institute.
“We see how, quite possibly, another global economic crisis is unfolding before our eyes. It began with an energy crisis in Europe and China in 2021, when energy prices rose. Then it escalated into a sanctions crisis associated with Russia, and now there is also a banking crisis. As a result, this leads to a loosening of the global economy,» Khazanov believes.
In his opinion, in the current situation, the further development of events can be anything — from a decrease in incomes of the population to a massive bankruptcy of Western banks. «As for the growth rate of world GDP at the end of the year at 2.2%, there are chances, but you know — 50 to 50. I admit that the growth rate of world GDP will be even lower: somewhere around 1-1.5%. This is at its best if it is possible to slow down the banking crisis in the West,» he added.
As the expert pointed out, the solution to the banking crisis in the West, as well as the lifting of sanctions against Russia, can affect the situation. «All these crisis phenomena will lead to a decline in industry, an increase in unemployment and a decrease in the level of income of the population,» Khazanov is sure. url=»https://ria.ru/20230326/retsessiya-1860790283.html» data-title=»The US said banking system problems are bringing the country closer to recession»>