World Bank: China’s Economic Slowdown Poses Threat to Global Growth


The World Bank has warned that an expected economic slow-down in China could have a significant impact on global growth, potentially leading to the lowest levels seen this century. The bank has proposed measures to prevent what it describes as a “lost decade” of growth. According to the World Bank’s statement, the world’s potential growth rate, which is the maximum long-term growth rate without causing inflation, will slow to an average annual rate of just 2.2 percent this decade.

The bank cites a range of factors that are contributing to the slowdown, including the ongoing impact of the Covid-19 pandemic, the conflict in Ukraine, and risks to the financial sectors in Europe and the United States. As a result, the bank is predicting that the global economy will expand by just 1.7 percent this year.

Despite these challenges, the World Bank believes that China’s economy will help prevent the global economy from falling into a recession, due to an expected annual growth rate of five percent this year. However, the bank warns that China’s ability to sustain global growth will diminish as its own growth slows in the coming years.

According to World Bank Chief Economist Indermit Gill, “We’ve grown used to China being the tractor of the global economy, and that will have to change because China’s growth rate is going to go down over time. Then the question is, what will we replace China with?”

The bank believes that the solution lies in making the biggest structural changes that each country can to keep their economies running. The bank’s report highlights three main changes that the global economy needs to make to lift potential growth higher: greater investment in capital and human capital, working longer hours, and using more technology to boost productivity.

“China won’t be replaced by one country,” Gill said. “What we have to do is figure out how every country can do better.”

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Abhilaksh Dhankhar is a Orator, Writer, Analyzer of geopolitical scenarios and military strategies. He has attended numerous conferences around the world on politics and has been conferred with more than 5 international awards. Abhilaksh also served as esteemed jury member in diplomatic meets. His vision to expand the ideals of international diplomacy made his self-initiated project "Drona" to be recognized as top ten most sustainable projects in India. 11 times, he has been selected for Harvard's Asia conferences and international relations programs. He worked with UNESCO under project RAISE to remove the gender disparity in the society. Abhilaksh constantly likes to spread his ideas and delivers effective seminars and sessions around the world, so far teaching more than 200 youngsters.


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