Most economies growing neither sustainably nor inclusively: WEF

Source:China Sport ShowRelease time:31-Jan-2024Clicks:

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Most economies are growing neither sustainably nor inclusively, and can absorb or generate innovation and minimise their contribution and susceptibility to global shocks in a limited manner, according to ‘The Future of Growth’ report released by the World Economic Forum (WEF) annual meeting in Davos.

Global growth has been slower in the past decade compared to previous ones, and the post-pandemic recovery is losing momentum.

Between 2018 and 2023, high-income economies’ gross domestic product (GDP) in purchasing-power-parity terms grew by 1.4 per cent annually on an average across economies featured in the report, by 2.2 per cent across upper-middle income economies, by 3.1 per cent across lower-middle income economies, and by 3.1 per cent across low-income economies.

Total global GDP today is higher than its pre-pandemic level, but growth rates in 2023 remain below 4 per cent across all income groups, said the report.

High-income economies score high on innovation and inclusion, while lower-income economies on sustainability, it said.

Among the lower middle-income economies, India and Kenya scored high on sustainability, Jordan on innovativeness; Vietnam on inclusiveness; and the Philippines on resilience.

Common challenges preventing a stronger balanced growth performance of this group included insufficient investment in renewable energy, lack of social safety nets, technology absorption and insufficient healthcare system capacity.

The report called for a novel approach to growth that balances efficiency with long-term sustainability and equity, examining speed and quality.

A significant economic slowdown, estimated to fall to the lowest rate in three decades by 2030, amid ongoing economic and geopolitical shocks was the highlight of the report.

This downturn is exacerbating a range of interconnected global challenges, including the climate crisis and a weakening social contract, which are collectively reversing progress in global development, it said.

Innovativeness is the dimension that attains the lowest global score (with a global average of 45.2 out of 100). The sustainability dimension’s global average is 46.8 out of 100, while the inclusiveness and resilience dimensions’ global average scores are 55.9 out of 100 and 52.8 out of 100 respectively.

None of the 107 economies covered by the report scored over 80 on any of the framework's four dimensions, where 100 is the theoretical maximum outcome possible.