Global Growth Yet to Alleviate World's Poverty Problem

Despite steady growth, the global economy isn't expanding quickly enough to relieve poverty, the World Bank reports. Challenges such as conflicts, protectionism, and climate costs hampered growth, particularly in developing regions. Expectations for future growth depend on easing these hurdles, while US economic policy remains uncertain.

The latest World Bank report highlights steady but insufficient global economic growth to alleviate poverty. The 2.7% growth projection for the next few years remains below the pre-2019 average. Global inflation is set to slow, approaching central bank targets, offering a partial silver lining amidst ongoing challenges.

The World Bank notes that developing economies struggle with sluggish investment, high debt, and climate change impacts. Countries excluding China and India lag behind advanced economies in per-capita growth. Prolonged conflicts, rising protectionism, and costs of climate change continue to stifle economic expansion in these regions.

The report provides an updated outlook for major economies. The US shows resilient growth with boosted consumer spending and productivity, despite high interest rates. In contrast, European growth falters due to weak spending and high energy costs. China's economy is set to decelerate amid a real estate slump, while India's rapid expansion highlights diverse regional dynamics.

(With inputs from agencies.)