According to the World Bank, global potential GDP growth will decrease by one-third in the coming years compared with 2000-2010, a trend that has been exacerbated by recent events such as the COVID-19 pandemic, logistical obstacles and the Russian-Ukrainian conflict. This has compounded long-standing issues such as a declining labor force, low productivity growth and reduced investment. Moreover, the global economy is now hampered by trade distortion from sanctions and ongoing conflicts, which has led to a climate of uncertainty and pessimistic expectations around economic growth. As a result, new investment and international trade expansion could be constrained.
Global Economic Growth Challenges
Potential growth is forecast to be lower in the coming years.
The Geopolitics of the American President