According to the World Bank’s latest forecast, the global economy is facing the worst five-year growth period since the 1990s. In its report, the organization predicts that despite the economic conditions varying across regions, overall economic growth will slow, especially in North America, Europe and Central Asia and the Asia-Pacific region.

The World Bank noted that while economic growth in Latin America and the Caribbean is expected to improve and a more significant recovery in the Middle East and Africa is likely to occur, the downturn in global trade and tensions in the financial markets will severely strain the global economy, especially in developing countries. by 2024, growth rates in developing countries are expected to be only 3.9%, more than one percentage point below the average level of the last decade.

According to the World Bank, about a quarter of developing countries and 40 percent of people in low-income countries will suffer from more poverty due to economic slowdown than they were before the outbreak in 2019, which marks the failure of the world to the goal of a “Decade of Change” to tackle extreme poverty, major infectious diseases and climate change in the 1920s.

However, the organization stresses that if governments can act quickly to increase investment and strengthen fiscal policy frameworks, there is still the potential to reverse the current adverse situation.The report notes that in order to trigger this prosperity, developing economies need to implement comprehensive policy packages, including measures such as improving fiscal and monetary frameworks, expanding cross-border trade and cash flows, improving the investment environment and improving institutional quality.

The agency stressed that while this is a tough task, many developing countries have successfully implemented these measures in the past.Therefore, taking these measures again will help mitigate the trend of economic growth slowdown expected for the remainder of this decade.