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World Bank warns of ‘lost decade’ in global growth without bold policy shifts

Average potential global economic growth will slump to a three-decade low of 2.2% per year through 2030, ushering in a “lost decade” for the world’s economy, unless policymakers adopt ambitious initiatives to boost labor supply, productivity and investment, the World Bank warned on Monday. But concerted efforts to boost investment in sustainable sectors, cut trade costs, leverage growth in services, and expand labor force participation could boost potential GDP growth by up to 0.7 percentage point to 2.9%, the report said. “A lost decade could be in the making for the global economy,” said World Bank chief economist Indermit Gill, adding that policies which incentivized work, increased productivity, and accelerated investment could reverse the trend.

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