World Bank sees subdued recovery in 2021 and plenty of risk

The global economy will experience a subdued recovery this year from the devastating pandemic, the World Bank predicted Tuesday, but it warned that the near-term outlook is highly uncertain and growth could be imperilled if coronavirus infections and delays in the rollout of vaccines continue.

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In its new Global Economic Outlook, the World Bank forecast 4 per cent growth this year following a 4.3 per cent decline in 2020, the biggest plunge in global output since a contraction of 9.8 per cent in 1945 as nations demobilised at the end of World War II.

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By comparison, the global recession triggered by the Great Depression of the 1930s saw growth shrink by 4.8 per cent on average from 1930 through 1932. The 2008 financial crisis triggered a 1.8 per cent drop in global output in 2009.


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