Lack of growth is the biggest economic challenge facing developing economies, said the chief economist of the World Bank.
Economic growth is essential for reducing poverty, as well as creating public revenue to be used for fiscal space, social safety nets and the provision of public goods, said Carmen Reinhart, chief economist of the World Bank.
“We had a challenge in many emerging markets and developing countries even before the pandemic, growth started to slow around 2015,” she said.
“With growth comes jobs, with growth and jobs comes recovery.”
The World Bank hopes to raise $ 100 billion in grants for the International Development Association’s fund for the poorest countries to address “tragic development returns” caused by the COVID-19 pandemic, said Monday its chairman David Malpass, adding that the growth disparities between advanced economies and developing countries were worsening.