World Bank warns global economy faces grim outlook as aftershocks of pandemic continue to weigh on growth. World Bank president David Malpass warns of 'grim outlook' for global economy. Aftershocks from pandemic still weighing on growth, especially in poor countries.

Global growth will slow to 4.1% this year from 5.5% in 2021. Mr Malpass said his greatest worry was widening global inequality. "The big drag is the inequality that's built into the system," he said. He said poorer countries were especially vulnerable to economic damage.

By 2023, economic activity in all advanced economies is likely to have recovered from the hit it took during the pandemic. But output in developing and emerging countries is expected to remain 4% lower than it was before Covid struck. Mr Malpass blamed stimulus programmes in the richest countries for worsening the divide by driving global inflation.

The World Economic Forum (WEF) warned that divergent economic recoveries were making it harder to collaborate on global challenges such as climate change. "Widening disparities within and between countries will not only make it more difficult to control Covid-19 and its variants," the WEF said.
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