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World faces "lost decade" of economic growth, says World Bank economist
The World Bank predicts that the global economy now faces a decade of lost growth, in part due to an older workforce and lower productivity. Is the way out of the looming doldrums to have a young population like Nigeria?
Yes, but those countries will need help from wealthy nations to invest in things like education to reap the benefits of their demographic divided, World Bank deputy chief economist Ayhan Kose tells GZERO's Tony Maciulis at the World Bank/IMF spring meetings in Washington, DC.
Meanwhile, the lender also wants developed countries to focus on its priority No. 1: climate. And there's always reforming the institution itself.
Kose explains why he thinks the World Bank can accomplish both goals, his take on whether artificial intelligence will deepen global inequality, and if believes a global recession is inevitable.
- What geopolitics stories could still blow up the global economy? ›
- Hard Numbers: Environmentalists targeted, World Bank outlook improves, mass shooting in Louisville, fiery cocktails in Northern Ireland, Winnie-the-Pooh gets punched ›
- Hard Numbers: World Bank chief resigns, Another Russian journalist jailed, Ukraine’s humanitarian needs, pessimistic Nigerians, good riddance Johns Hopkins tracker ›
- Want to help poor countries now? Open your markets to their farmers, World Bank chief tells wealthy nations ›
- Can the world avoid a global recession? ›
- Podcast: Fix the global debt crisis before it's too late, warns World Bank's David Malpass - GZERO Media ›
Global economy headed to a recession
Most of the global economy is more likely than not headed toward a recession in 2023. But don't only blame it on inflation and Russia's war in Ukraine.
The economic slowdown this year "is an acceleration of already structural problems around growth, that really started before the pandemic," renowned global economist, Dambisa Moyo tells Ian Bremmer on GZERO World.
Moyo says global inflation is not going anywhere, as the likelihood of a worldwide recession looms large.
Although most of the world understands that they need to transition to cleaner energy, in the short term they still rely on “a hundred million barrels of oil every day.” Europe is creating what Moyo calls, an “industrial Band-Aid solution,” rather than long term solutions to rely on energy from other countries. They discuss how these combined threats will affect the world economy this year.
This interview was featured in a GZERO World episode: "Struggling for economic progress as global recession looms in 2023" on January 9, 2023.
- The unintended effect of US-China economic breakup ›
- Dambisa Moyo: Europe's energy transition needs more than a "band-aid solution" ›
- Struggling for economic progress as global recession looms in 2023 ›
- Podcast: China's economic head start & a world accelerating into recession ›
- The global economy: good news and bad news from economist Dambisa Moyo - GZERO Media ›
Welcome to the global economy in 2023
How could the most robust global economy in human history get stuck in a sticky inflation trap?
The good news: From a historical perspective, the best time to be alive is ... right now.
Over 1 billion people have escaped poverty within the last two generations. They have experienced an unprecedented period of fast-expanding and broad-based prosperity.
And in the near future, there's a lot to look forward to: most of the world is moving on from the pandemic, Russia has no way to win in Ukraine, the European Union and NATO are stronger than ever, and the climate economy is benefiting from dirt-cheap clean energy prices, Ian Bremmer explains on GZERO World.
But the bad news is that there are real problems ahead. The main one is inflation, which is not going away anytime soon and will drive a lot of the economic doom and gloom for 2023.
As the global economy lurches into the new year, there is plenty to be thankful for - and plenty to fear.
Watch the GZERO World episode: Struggling for economic progress as global recession looms in 2023
- Struggling for economic progress as global recession looms in 2023 ›
- 3 reasons risk of global recession in 2023 has increased ›
- What's the chance of a global recession in 2023? ›
- What does the ‘multi-speed’ global economy mean in 2023? ›
- Explaining the long history of US debt (& which other countries are saddled with debt) - GZERO Media ›
The unintended effect of US-China economic breakup
The US and China are moving into creating separate economic worlds for each other. And that won't be easy because the two economies are more closely linked than many people understand.
Unlike with Russia, which the West has almost completely isolated after invading Ukraine, we can't just stop trade with China, renowned economist Dambisa Moyo tells Ian Bremmer on GZERO World.
What's more, the US-China economic decoupling will have big implications for the developing world, where 90% of the global population lives. Moyo says that the US might lose out to China, which is fast becoming more appealing to developing nations.
If you want a growth story and are looking for investment, she adds, "the China story is still quite attractive."
Watch the GZERO World episode: Struggling for economic progress as global recession looms in 2023
Why China is leading economically: infrastructure, energy, & tech
Most of the global economy is more likely than not headed toward a recession in 2023. But don't only blame it on inflation and Russia's war in Ukraine.
The economic slowdown face this year "is an acceleration of already structural problems around growth, that really started before the pandemic," renowned economist Dambisa Moyo tells Ian Bremmer on GZERO World.
Among the G-20 economies, the only country that has been serious about industrial and strategic policies to address those problems is China. That's why, she says, many Western nations were so shocked by the economic fallout of COVID.
For Moyo, for instance the US didn't have an off-the-shelf plan to respond to the pandemic. Still, she sees an opportunity for a reset in Western capitalism.
Watch the GZERO World episode: Struggling for economic progress as global recession looms in 2023
Struggling for economic progress as global recession looms in 2023
What's in store for the global economy in 2023? Well, it's not going to be pretty.
A raging war in Europe, sky-high inflation, and an unstable China will create strong economic headwinds in the year to come. But it's not all doom and gloom. Ian Bremmer looks at the state of the global economy in this new year with renowned global economist, Dambisa Moyo, to put it all into perspective on GZERO World.
Global inflation is not going anywhere anytime soon as the likelihood of a worldwide recession looms large. And yet, for most of us living here on Planet Earth, now is the best time to be alive in human history. Globalization has brought prosperity to billions worldwide. And in the United States, the economy has made it out of the pandemic remarkably well.
But will out of control inflation, an unstable China, and a rogue Russia change this equation in 2023? Moyo discusses how these combined threats will affect the world economy this year.
"We're now over 8 billion people. Issues around inequality, issues around supply, as well as climate transition energy issues, and debt. And so there are ongoing challenges, that we were already facing, but I think those things will be accelerated in 2023," she explains.
Podcast: China's economic head start & a world accelerating into recession
Listen: What's in store for the global economy in 2023? Well, it's not going to be pretty. A raging war in Europe, sky-high inflation, and an unstable China will create strong economic headwinds in the year to come. But it’s not all doom and gloom. Globalization has brought prosperity to billions worldwide. And in the United States, the economy has made it out of the pandemic remarkably well.
On the GZERO World podcast, Ian Bremmer speaks to renowned global economist, Dambisa Moyo, who says global inflation is not going anywhere, as the likelihood of a worldwide recession looms large. The US and China are moving into creating separate economic worlds, but are still closely linked. Although most of the world understands that they need to transition to cleaner energy, in the short term they still rely on “a hundred million barrels of oil every day.” Europe is creating what Moyo calls an “industrial Band-Aid solution,” rather than long term solutions to rely on energy from other countries. They discuss how these combined threats will affect the world economy this year.
- Podcast: Winter is coming. Global recession, too? ›
- Is the world on the brink of another global recession? ›
- What's the chance of a global recession in 2023? ›
- Podcast: Making sense of global inflation, looming recession, & economists who disagree ›
- China is open for business: Chinese Vice Premier at Davos - GZERO Media ›
- Global economy headed to a recession: Dambisa Moyo - GZERO Media ›
- Podcast: Larry Summers breaks down the banking crisis - GZERO Media ›
Emerging markets most vulnerable to recession and political discontent
Inflation shockwaves is Eurasia Group's top geopolitical risk No. 4 for 2023. But who is most vulnerable to the effects of rising interest rates and a looming global recession?
Emerging markets.
Why? For Rob Kahn, managing director for geo-economics at Eurasia Group, these countries are in deep trouble because they have higher debt and more subject to sudden stops of capital flows that'll make it harder for them to pay for stuff. Not to mention that the pandemic has killed any fiscal monetary policy space they had before COVID, Kahn noted in a GZERO Live conversation about Eurasia Group's Top Risks 2023 report.
Kahn also shares his thoughts on the implications of a global recession and the politics of central banks fighting it.