World Bank predicts a «lost decade» for the global economy

A lost decade is forming for the world economy, says Indermit Gill, chief economist and senior vice president for development economics at the World Bank.

"A lost decade may be forming for the global economy. The continued decline in potential growth has serious implications for the world's ability to address the growing range of challenges of our time, such as entrenched poverty, income disparity and climate change," Gill said in a statement.

The international organisation's chief economist calculates that the decline in potential growth can be reversed with policies that "encourage labour, boost productivity and accelerate investment".

According to the World Bank report, potential global GDP growth could be boosted by 0.7 percentage points to an average annual rate of 2.9 per cent if countries adopt sustainable, growth-oriented policies.

According to the international organisation's updated forecast, the average potential global GDP growth rate will be 2.2 per cent a year from 2022 to 2030.