Nearly a month after devastating twin earthquakes struck Venezuela's central coast, survivors continue to face immense hardship. The powerful 7.2 and 7.5 magnitude earthquakes claimed over 5,000 lives, displaced nearly 18,000 people, and caused an estimated $19.6 billion in damages, according to the World Bank. Families are still searching for missing loved ones while hospitals, schools, and critical infrastructure remain heavily damaged. Mental health experts have also raised alarms over rising trauma, depression, and suicide risks among survivors struggling to rebuild their lives.

Venezuela Earthquake disaster deepens | Thousands homeless, trauma crisis grows | Venezuela crisis

Bangladesh has received a major financial boost as World Bank support arrives at a crucial moment for the economy. With foreign exchange reserves under pressure, rising energy costs and global economic uncertainty weighing on growth, the fresh inflow is expected to provide much-needed breathing space. The funding could help stabilise key sectors, support economic reforms and ease pressure on the taka. 


Bangladesh Secures $1.5 Billion Boost Amid Reserve Concerns

The economic fallout of the Iran war is beginning to ripple across developing economies. According to an internal World Bank document viewed by Reuters, 27 countries have moved to activate crisis financing instruments that would allow them to quickly access funds from existing World Bank programs. 


World Bank Rapid Response Window Sees Rising Demand

The Iran war is no longer just a regional conflict — its impact is now spreading across transportation, energy, industries and global financial markets. The closure of the Strait of Hormuz has disrupted one of the world’s most critical trade routes, sending oil and fuel prices soaring while forcing airlines and shipping companies to reroute operations. Industries dependent on energy and raw materials are facing rising costs, while stock markets remain volatile amid fears of inflation, recession and long-term supply chain disruption.


How War in West Asia Is Shaping the Global Economy

Pakistan’s economic story right now is being defined by one number… its rising debt burden. With external liabilities running into well over 125 billion dollars, the country is relying heavily on global lenders and friendly nations just to stay afloat. Here’s a closer look at Pakistan’s total debt story and the risks ahead.

Pakistan's Debt Burden Explodes Amid $8 Bn Saudi 'Bailout

The World Bank estimates that rebuilding Ukraine after years of conflict will cost around $588 billion. The massive reconstruction effort will require investments in infrastructure, housing, energy, and public services. International donors and financial institutions are being called upon to support Ukraine’s recovery, aiming to restore the economy, critical facilities, and social stability amid ongoing security challenges.


World Bank Estimates Ukraine's Rebuilding Cost at $588 Billion

The World Bank reaffirmed its $20 billion, 10-year development commitment to Pakistan at the ALULA Conference in Saudi Arabia, focusing on the Country Partnership Framework for reforms in energy, education, health, and climate resilience.



World Bank Locks $20B for Pakistan at ALULA Summit

The World Bank has warned that a quarter of developing countries are now poorer than they were before the Covid pandemic. Many low income nations, especially in sub Saharan Africa, have endured a prolonged economic shock over the past six years, raising fresh concerns about stalled development and widening global inequality.


World Bank Sounds Alarm on Global Poverty and Slowing Growth | WION

India has officially become the world’s fourth largest economy, surpassing Japan with a GDP valued at $4.18 trillion, according to a government statement. The country is now poised to overtake Germany to claim the third position within the next 2–3 years, driven by strong domestic demand and sustained economic reforms.
India’s real GDP grew 8.2% in the second quarter of FY 2025–26, marking a six-quarter high and reinforcing its status as the world’s fastest-growing major economy. Global institutions including the IMF, World Bank, Moody’s, and OECD have echoed optimism about India’s growth trajectory through the rest of the decade.
As global trade uncertainties persist, India’s economic resilience and consumption-led growth signal a major shift in the global economic order.

India Becomes World’s 4th Largest Economy, Overtakes Japan | Govt Says Germany Next

India has emerged as the fourth country in income equality globally after the Slovak Republic, Slovenia, and Belarus, securing this position as the most economically equal society in the world. This remarkable achievement is particularly notable because of the vast population and diverse demographics of India. The position of India is the product of sustained economic growth paired with targeted social policies which focus on reducing poverty and expanding financial access, according to a report by the World Bank."According to the latest World Bank data, India's Gini Index stands at 25.5. This places India among the most equal countries in the world in relative terms. India's score is much lower than China's 35.7 and far lower than the United States, which stands at 41.8. It is also more equal than every G7 and G20 country, many of which are considered advanced economies," said a government press note citing data from the World Bank report.The report indicated that India is placed in the “moderately low” inequality bracket, with a Gini Index score between 25 and 30, just short of entering the “low inequality” category, which includes nations like the Slovak Republic (24.1), Slovenia (24.3), and Belarus (24.4)."Apart from these three, India has a better score than all of the other 167 countries for which the World Bank has released data," said the government note.Only 30 countries in the world fall under the “moderately low” inequality group, which includes many European nations with strong welfare systems, such as Iceland, Norway, Finland, and Belgium. It also features emerging economies like Poland and affluent countries like the UAE."India's journey towards a more equal society is reflected in its Gini Index over the years. The index was measured at 28.8 in 2011, and reached 25.5 in 2022. This steady shift shows that India has made consistent progress in combining economic growth with social equity," the note added.Emphasising that India's strong performance on the Gini Index is not a coincidence, the report further added that it reflects the consistent effort of the country in reducing poverty across both rural and urban regions.<h3>What is the Gini index?</h3>The Gini Index signify how income, wealth, or consumption is distributed within a population. A score of 0 indicates complete equality, whereas 100 denotes total inequality, where a single person possesses all resources. Lower scores reflect a fairer distribution. India is placed in the moderately low” inequality range (between 25 and 30) with a Gini score of 25.5 and is close to entering the “low inequality” category. &nbsp;

The report indicated that India is placed in the “moderately low” inequality bracket, with a Gini Index score between 25 and 30, just short of entering the “low inequality” category, which includes nations like the Slovak Republic (24.1), Slovenia (24.3), and Belarus (24.4).

India has emerged as the fourth country in income equality globally after the Slovak Republic, Slovenia, and Belarus, securing this position as the most economically equal society in the world. This remarkable achievement is particularly notable because of the vast population and diverse demographics of India. The position of India is the product of sustained economic growth paired with targeted social policies which focus on reducing poverty and expanding financial access, according to a report by the World Bank. "According to the latest World Bank data, India's Gini Index stands at 25.5. This places India among the most equal countries in the world in relative terms. India's score is much lower than China's 35.7 and far lower than the United States, which stands at 41.8. It is also more equal than every G7 and G20 country, many of which are considered advanced economies," said a government press note citing data from the World Bank report. The report indicated that India is placed in the “moderately low” inequality bracket, with a Gini Index score between 25 and 30, just short of entering the “low inequality” category, which includes nations like the Slovak Republic (24.1), Slovenia (24.3), and Belarus (24.4). "Apart from these three, India has a better score than all of the other 167 countries for which the World Bank has released data," said the government note. Only 30 countries in the world fall under the “moderately low” inequality group, which includes many European nations with strong welfare systems, such as Iceland, Norway, Finland, and Belgium. It also features emerging economies like Poland and affluent countries like the UAE. "India's journey towards a more equal society is reflected in its Gini Index over the years. The index was measured at 28.8 in 2011, and reached 25.5 in 2022. This steady shift shows that India has made consistent progress in combining economic growth with social equity," the note added. Emphasising that India's strong performance on the Gini Index is not a coincidence, the report further added that it reflects the consistent effort of the country in reducing poverty across both rural and urban regions. What is the Gini index? The Gini Index signify how income, wealth, or consumption is distributed within a population. A score of 0 indicates complete equality, whereas 100 denotes total inequality, where a single person possesses all resources. Lower scores reflect a fairer distribution. India is placed in the moderately low” inequality range (between 25 and 30) with a Gini score of 25.5 and is close to entering the “low inequality” category.

The report indicated that India is placed in the “moderately low” inequality bracket, with a Gini Index score between 25 and 30, just short of entering the “low inequality” category, which includes nations like the Slovak Republic (24.1), Slovenia (24.3), and Belarus (24.4).

India ranks 4th globally in income equality, ahead of G7 and G20 nations. Here's what the World Bank Gini report says

India has quietly emerged as one of the most income-equal countries in the world, according to the World Bank’s Spring 2025 Poverty and Equity Brief. With a Gini Index of 25.5, India ranks fourth globally in income equality, behind only the Slovak Republic (24.1), Slovenia (24.3), and Belarus (24.4). The Gini Index positions India ahead of the United States (41.8), China (35.7), and all G7 and G20 countries. This shift marks a significant change in India’s economic narrative, which has historically been associated with high levels of inequality.&nbsp;<h2>What is a Gini Index?</h2> The Gini Index is a global standard used to measure income inequality within a country. Ranging from 0 (perfect equality) to 100 (complete inequality), a lower score indicates a more balanced income distribution. With a Gini score of 25.5, India falls into the 'moderately low' inequality bracket (25–30).&nbsp;<h2>Decline in Poverty and Improved Distribution</h2>&nbsp;India’s current score marks a notable improvement from 28.8 in 2011. The World Bank reports that, between 2011 and 2023, India lifted 171 million people out of extreme poverty. The poverty rate, which stood at 16.2 per cent in 2011, has now dropped to just 2.3 percent based on the international poverty line of $2.15 per day. During this period, India’s Gini Index improved from 28.8 to 25.5, reflecting more equitable income distribution. The World Bank attributes this progress to focused policy interventions aimed at poverty reduction and ensuring benefits reach the lowest-income households.&nbsp;The country’s economic gains are increasingly being shared more evenly, a notable contrast to widening inequality trends in several developed nations. The World Bank data suggests that India’s model, which is emphasising more on targeted delivery, financial access, and digital identification, has played a key role in fostering inclusive growth.&nbsp;<h2>Role of Welfare and Digital Governance</h2>&nbsp;The release also highlights on key government schemes playing important role in this transformation. The Pradhan Mantri Jan Dhan Yojana, Aadhaar, Direct Benefit Transfers (DBT), PM Vishwakarma Yojana and, Ayushman Bharat yojana. The Stand-Up India initiative and PM Vishwakarma Yojana have supported entrepreneurship among marginalised groups. Meanwhile, food security under the PM Garib Kalyan Anna Yojana has benefited people nationwide.

The Gini Index positions India ahead of the United States (41.8), China (35.7), and all G7 and G20 countries.

India has quietly emerged as one of the most income-equal countries in the world, according to the World Bank’s Spring 2025 Poverty and Equity Brief. With a Gini Index of 25.5, India ranks fourth globally in income equality, behind only the Slovak Republic (24.1), Slovenia (24.3), and Belarus (24.4). The Gini Index positions India ahead of the United States (41.8), China (35.7), and all G7 and G20 countries. This shift marks a significant change in India’s economic narrative, which has historically been associated with high levels of inequality. What is a Gini Index? The Gini Index is a global standard used to measure income inequality within a country. Ranging from 0 (perfect equality) to 100 (complete inequality), a lower score indicates a more balanced income distribution. With a Gini score of 25.5, India falls into the 'moderately low' inequality bracket (25–30). Decline in Poverty and Improved Distribution India’s current score marks a notable improvement from 28.8 in 2011. The World Bank reports that, between 2011 and 2023, India lifted 171 million people out of extreme poverty. The poverty rate, which stood at 16.2 per cent in 2011, has now dropped to just 2.3 percent based on the international poverty line of $2.15 per day. During this period, India’s Gini Index improved from 28.8 to 25.5, reflecting more equitable income distribution. The World Bank attributes this progress to focused policy interventions aimed at poverty reduction and ensuring benefits reach the lowest-income households. The country’s economic gains are increasingly being shared more evenly, a notable contrast to widening inequality trends in several developed nations. The World Bank data suggests that India’s model, which is emphasising more on targeted delivery, financial access, and digital identification, has played a key role in fostering inclusive growth. Role of Welfare and Digital Governance The release also highlights on key government schemes playing important role in this transformation. The Pradhan Mantri Jan Dhan Yojana, Aadhaar, Direct Benefit Transfers (DBT), PM Vishwakarma Yojana and, Ayushman Bharat yojana. The Stand-Up India initiative and PM Vishwakarma Yojana have supported entrepreneurship among marginalised groups. Meanwhile, food security under the PM Garib Kalyan Anna Yojana has benefited people nationwide.

The Gini Index positions India ahead of the United States (41.8), China (35.7), and all G7 and G20 countries.

India rises to 4th globally in income equality, ahead of US and China: World Bank

China’s increasing use of collateral to secure loans to emerging economies is eroding these countries’ ability to control their public finances, according to a new international study. By tying loans to revenues from commodities like oil and copper, and locking funds in offshore escrow accounts, Beijing has created what researchers call a “ring-fencing” mechanism, one that restricts debtor governments’ fiscal freedom for years.&nbsp;The study, published on Thursday by researchers from AidData, the Kiel Institute, and Georgetown University, reviewed over 900 publicly guaranteed loans extended by Chinese state-owned entities between 2000 and 2021. Of these, nearly half worth US $418 billion, were found to be collateralised, largely targeting low-income and resource-rich nations.<h2>How does collateralised lending work?</h2>Unlike typical sovereign loans, China’s collateralised lending structure uses commodity export revenues, such as oil, gas, or minerals, as guarantees. In many cases, borrower countries are required to deposit the proceeds from these exports into escrow accounts located in China, controlled directly by the lenders.&nbsp;“Some of these revenues remain offshore beyond the control of the borrowing government for many years,” the report noted, adding that the lack of access or transparency “compromises debtor governments’ ability to monitor and steer their fiscal affairs,” as quoted by Reuters.The practice is prevalent in China’s lending to countries across Africa, Asia, Latin America, and the Middle East, particularly in those facing economic distress or weak governance.<h2>The numbers behind the debt trap</h2>Between 2000 and 2021, China’s lending to the developing world surged dramatically, both in volume and in complexity. The bar graph below, sourced from AidData, shows how collateralised lending (orange bars) surged after the 2008 financial crisis and peaked again in 2014–2016, accounting for the majority of total lending in those years.<figure class="table"><table><tbody><tr><td>Year</td><td>Collateralised Loans (US$ bn)</td><td>Uncollateralised Loans (US$ bn)</td></tr><tr><td>2000</td><td>~1</td><td>~1</td></tr><tr><td>2005</td><td>~12</td><td>~9</td></tr><tr><td>2010</td><td>~70</td><td>~30</td></tr><tr><td>2014</td><td>~55</td><td>~25</td></tr><tr><td>2016</td><td>~50</td><td>~30</td></tr><tr><td>2020</td><td>~10</td><td>~15</td></tr></tbody></table></figure>Source: AidData / HCC; Graphic: Karin Strohecker via Reuters(All figures in constant 2021 US dollars) Notably, the average collateralised loan locks up over 20 per cent of a country’s annual external debt repayments, restricting budgetary resources and access to alternative credit, as per the study.<h2>Fiscal control versus Chinese leverage</h2>According to Brad Parks, Executive Director of AidData, the report highlights a “previously undocumented pattern of revenue ring-fencing,” in which Chinese lenders gain first claim on national income streams, often at the expense of domestic public spending or creditor negotiations.&nbsp;In countries that later required debt restructuring, such as Zambia and Sri Lanka, China’s collateralised terms further complicated multilateral relief efforts, as Chinese banks refused to write down secured portions of the debt, as noted in the IMF-World Bank joint paper in 2023.<h2>IMF, World Bank raise the red flag</h2>Global financial institutions have expressed growing alarm. A 2023 paper by the IMF and World Bank warned that China’s practice increases the risk of over-borrowing, crowds out other unsecured creditors, and makes debt distress more likely, especially during commodity price shocks or political instability.&nbsp;“The collateral mechanism may appear commercially rational from a lender’s perspective, but it severely constrains sovereign fiscal space,” said one IMF official, as quoted by Reuters.<h2>A broader pattern of financial dominance</h2>This lending strategy is part of China’s broader transformation into a global creditor. According to the Financial Times, Beijing extended over US $1.34 trillion in overseas credit during 2000–2021, with a growing share dedicated to critical mineral extraction, infrastructure-for-resources deals, and bailout-style rescue loans to countries facing economic collapse.&nbsp;In fact, China provided US $240 billion in rescue financing to 22 countries between 2008 and 2021, positioning itself as a parallel lender of last resort to the IMF, albeit on very different terms.For emerging economies desperate for infrastructure and liquidity, China’s cash may offer a lifeline, but at a cost. The use of commodity-backed, collateralised loans gives Beijing preferential repayment rights and direct control over a borrower’s key revenue streams, often outside the purview of national parliaments or the public.&nbsp;With nearly half of China’s overseas loans now collateralised, and the debt burdens of many developing nations mounting, the study paints a troubling picture: a global financial system in which fiscal sovereignty is being steadily traded for short-term liquidity on China’s terms.&nbsp;(With inputs from the agencies) &nbsp;

By tying loans to oil, copper and other exports, China is locking key revenues offshore and tightening financial grip on low income, resource rich economies.

China’s increasing use of collateral to secure loans to emerging economies is eroding these countries’ ability to control their public finances, according to a new international study. By tying loans to revenues from commodities like oil and copper, and locking funds in offshore escrow accounts, Beijing has created what researchers call a “ring-fencing” mechanism, one that restricts debtor governments’ fiscal freedom for years. The study, published on Thursday by researchers from AidData, the Kiel Institute, and Georgetown University, reviewed over 900 publicly guaranteed loans extended by Chinese state-owned entities between 2000 and 2021. Of these, nearly half worth US $418 billion, were found to be collateralised, largely targeting low-income and resource-rich nations. How does collateralised lending work? Unlike typical sovereign loans, China’s collateralised lending structure uses commodity export revenues, such as oil, gas, or minerals, as guarantees. In many cases, borrower countries are required to deposit the proceeds from these exports into escrow accounts located in China, controlled directly by the lenders. “Some of these revenues remain offshore beyond the control of the borrowing government for many years,” the report noted, adding that the lack of access or transparency “compromises debtor governments’ ability to monitor and steer their fiscal affairs,” as quoted by Reuters. The practice is prevalent in China’s lending to countries across Africa, Asia, Latin America, and the Middle East, particularly in those facing economic distress or weak governance. The numbers behind the debt trap Between 2000 and 2021, China’s lending to the developing world surged dramatically, both in volume and in complexity. The bar graph below, sourced from AidData, shows how collateralised lending (orange bars) surged after the 2008 financial crisis and peaked again in 2014–2016, accounting for the majority of total lending in those years. Year Collateralised Loans (US$ bn) Uncollateralised Loans (US$ bn) 2000 ~1 ~1 2005 ~12 ~9 2010 ~70 ~30 2014 ~55 ~25 2016 ~50 ~30 2020 ~10 ~15 Source: AidData / HCC; Graphic: Karin Strohecker via Reuters (All figures in constant 2021 US dollars) Notably, the average collateralised loan locks up over 20 per cent of a country’s annual external debt repayments, restricting budgetary resources and access to alternative credit, as per the study. Fiscal control versus Chinese leverage According to Brad Parks, Executive Director of AidData, the report highlights a “previously undocumented pattern of revenue ring-fencing,” in which Chinese lenders gain first claim on national income streams, often at the expense of domestic public spending or creditor negotiations. In countries that later required debt restructuring, such as Zambia and Sri Lanka, China’s collateralised terms further complicated multilateral relief efforts, as Chinese banks refused to write down secured portions of the debt, as noted in the IMF-World Bank joint paper in 2023. IMF, World Bank raise the red flag Global financial institutions have expressed growing alarm. A 2023 paper by the IMF and World Bank warned that China’s practice increases the risk of over-borrowing, crowds out other unsecured creditors, and makes debt distress more likely, especially during commodity price shocks or political instability. “The collateral mechanism may appear commercially rational from a lender’s perspective, but it severely constrains sovereign fiscal space,” said one IMF official, as quoted by Reuters. A broader pattern of financial dominance This lending strategy is part of China’s broader transformation into a global creditor. According to the Financial Times, Beijing extended over US $1.34 trillion in overseas credit during 2000–2021, with a growing share dedicated to critical mineral extraction, infrastructure-for-resources deals, and bailout-style rescue loans to countries facing economic collapse. In fact, China provided US $240 billion in rescue financing to 22 countries between 2008 and 2021, positioning itself as a parallel lender of last resort to the IMF, albeit on very different terms. For emerging economies desperate for infrastructure and liquidity, China’s cash may offer a lifeline, but at a cost. The use of commodity-backed, collateralised loans gives Beijing preferential repayment rights and direct control over a borrower’s key revenue streams, often outside the purview of national parliaments or the public. With nearly half of China’s overseas loans now collateralised, and the debt burdens of many developing nations mounting, the study paints a troubling picture: a global financial system in which fiscal sovereignty is being steadily traded for short-term liquidity on China’s terms. (With inputs from the agencies)

China’s collateralised loans are eroding fiscal control in developing nations, warns major international study.

China’s collateralised lending traps emerging economies in debt control crisis, says study

The World Bank is sounding the alarm over a growing lack of transparency in how developing countries borrow money. In a new report released on Friday, the Bank called for “radical debt transparency”, urging both borrowers and lenders to reveal more detailed information about sovereign loans to prevent future financial crises.&nbsp;The warning comes amid rising concern over off-budget borrowing, opaque financial contracts, and secretive debt arrangements that are making it harder to assess the true financial health of many nations, particularly across Africa, Asia, and low-income economies.&nbsp;“When hidden debt surfaces, financing dries up and terms worsen,” said Axel van Trotsenburg, the World Bank’s senior managing director, as quoted by Reuters.&nbsp;“Radical debt transparency, which makes timely and reliable information accessible, is fundamental to break the cycle.”<h2>Why is debt transparency so urgent?</h2>As market volatility, inflation, and geopolitical tensions strain government budgets, many countries are resorting to complex and unconventional borrowing methods, such as central bank currency swaps, private debt placements, and collateral-backed loans—to raise funds.&nbsp;These financial instruments often bypass standard budget reporting, making it increasingly difficult for lenders, credit agencies, and even citizens to track a country’s real debt burden.&nbsp;According to the World Bank, more than 75 per cent of low-income countries now report some debt data, a significant rise from below 60 per cent in 2020.&nbsp;&nbsp;However, only 25 per cent disclose loan-by-loan information, meaning that in most cases, the specifics of individual loan agreements remain hidden from the public and global financial institutions.<h2>Countries under pressure&nbsp;</h2>Several nations are already facing the consequences of opaque debt structures.&nbsp;Senegal, for instance, has turned to private debt placements while engaging in talks with the International Monetary Fund (IMF) over misreporting of earlier obligations.&nbsp;&nbsp;In Nigeria, the central bank revealed in early 2023 that billions of dollars in foreign exchange reserves were tied up in secretive financial contracts signed by the previous administration.&nbsp;Angola was recently forced to pay a $200 million margin call after a sharp fall in its bond prices. Meanwhile, Cameroon and Gabon have been linked to so-called “off-screen” borrowing arrangements, raising fresh concerns over undisclosed public liabilities in the region.<h2>What the World Bank wants</h2>To prevent a systemic crisis, the World Bank is urging governments to undertake legal reforms and adopt stricter reporting mechanisms. These include mandatory disclosure of new debt agreements and greater transparency from both lenders and sovereign borrowers.&nbsp;The Bank has outlined a five-point plan:      •     Legal changes: Make loan contract transparency a legal obligation.      •     Public disclosures: Publish loan-by-loan data and the terms of any debt restructurings.      •     Creditor openness: Require lenders to disclose their loan and guarantee portfolios.      •     Regular audits: Improve oversight through independent and timely reviews.      •     Enhanced IMF tools: Equip global financial institutions to better detect debt misreporting.&nbsp;As quoted by Reuters, the Bank believes broader debt coverage and deeper, granular loan-level disclosures will help the global community accurately assess debt risks and exposures across emerging economies.<h2>A broader warning for the global debt market</h2>The World Bank’s message isn’t just for governments. It is also a direct challenge to creditors, especially those who operate outside traditional international lending frameworks.&nbsp;In recent years, Chinese policy banks, Gulf state funds, and private bondholders have taken on a greater share of developing country lending, often through non-concessional loans that are not subject to transparency conditions or multilateral oversight.&nbsp;With interest rates remaining high and global credit access tightening, the Bank warned that without transparency, countries could quickly slide from debt distress into full-blown financial crises.&nbsp;&nbsp;(With inputs from the agencies)&nbsp;

Concerns arise over off-budget borrowing and undisclosed debt arrangements, complicating financial assessments for nations, particularly in Africa and Asia. 

The World Bank is sounding the alarm over a growing lack of transparency in how developing countries borrow money. In a new report released on Friday, the Bank called for “radical debt transparency”, urging both borrowers and lenders to reveal more detailed information about sovereign loans to prevent future financial crises. The warning comes amid rising concern over off-budget borrowing, opaque financial contracts, and secretive debt arrangements that are making it harder to assess the true financial health of many nations, particularly across Africa, Asia, and low-income economies. “When hidden debt surfaces, financing dries up and terms worsen,” said Axel van Trotsenburg, the World Bank’s senior managing director, as quoted by Reuters. “Radical debt transparency, which makes timely and reliable information accessible, is fundamental to break the cycle.” Why is debt transparency so urgent? As market volatility, inflation, and geopolitical tensions strain government budgets, many countries are resorting to complex and unconventional borrowing methods, such as central bank currency swaps, private debt placements, and collateral-backed loans—to raise funds. These financial instruments often bypass standard budget reporting, making it increasingly difficult for lenders, credit agencies, and even citizens to track a country’s real debt burden. According to the World Bank, more than 75 per cent of low-income countries now report some debt data, a significant rise from below 60 per cent in 2020. However, only 25 per cent disclose loan-by-loan information, meaning that in most cases, the specifics of individual loan agreements remain hidden from the public and global financial institutions. Countries under pressure Several nations are already facing the consequences of opaque debt structures. Senegal, for instance, has turned to private debt placements while engaging in talks with the International Monetary Fund (IMF) over misreporting of earlier obligations. In Nigeria, the central bank revealed in early 2023 that billions of dollars in foreign exchange reserves were tied up in secretive financial contracts signed by the previous administration. Angola was recently forced to pay a $200 million margin call after a sharp fall in its bond prices. Meanwhile, Cameroon and Gabon have been linked to so-called “off-screen” borrowing arrangements, raising fresh concerns over undisclosed public liabilities in the region. What the World Bank wants To prevent a systemic crisis, the World Bank is urging governments to undertake legal reforms and adopt stricter reporting mechanisms. These include mandatory disclosure of new debt agreements and greater transparency from both lenders and sovereign borrowers. The Bank has outlined a five-point plan:       •     Legal changes: Make loan contract transparency a legal obligation.       •     Public disclosures: Publish loan-by-loan data and the terms of any debt restructurings.       •     Creditor openness: Require lenders to disclose their loan and guarantee portfolios.       •     Regular audits: Improve oversight through independent and timely reviews.       •     Enhanced IMF tools: Equip global financial institutions to better detect debt misreporting. As quoted by Reuters, the Bank believes broader debt coverage and deeper, granular loan-level disclosures will help the global community accurately assess debt risks and exposures across emerging economies. A broader warning for the global debt market The World Bank’s message isn’t just for governments. It is also a direct challenge to creditors, especially those who operate outside traditional international lending frameworks. In recent years, Chinese policy banks, Gulf state funds, and private bondholders have taken on a greater share of developing country lending, often through non-concessional loans that are not subject to transparency conditions or multilateral oversight. With interest rates remaining high and global credit access tightening, the Bank warned that without transparency, countries could quickly slide from debt distress into full-blown financial crises. (With inputs from the agencies)

The World Bank warns of increasing opacity in developing countries' borrowing practices, advocating for “radical debt transparency” in a recent report.

Why is the World Bank demanding radical debt transparency now?

America’s inflation engine is picking up speed again, just as global growth shows signs of long-term fatigue.&nbsp;&nbsp;A fresh reading on consumer prices is expected to confirm a modest increase, as early impacts of new US tariffs begin reaching shoppers.&nbsp;&nbsp;Meanwhile, a World Bank report has warned the world economy could be heading for its slowest decade since the 1960s.<h2>US inflation ticks up as tariff pressures mount</h2>Consumer prices in the United States are expected to rise at a faster pace in May, driven in part by early signs of cost pass-through from new trade tariffs.&nbsp;&nbsp;As per a Bloomberg survey of economists, the core Consumer Price Index (which excludes food and fuel) likely rose by 0.3 per cent in May, slightly higher than April’s 0.2 per cent gain.&nbsp;If confirmed, annual inflation would stand at 2.9 per cent, indicating a potential reversal of the cooling trend seen in early 2024.&nbsp;Some of this price pressure appears to be linked to import levies introduced under Donald Trump’s trade policy. While most retailers have so far absorbed the higher costs or used pre-tariff stock, this buffer is thinning.&nbsp;&nbsp;Walmart, for instance, has already warned that prices on some items may need to rise in the coming weeks.&nbsp;According to a note by Pantheon Macroeconomics economists Samuel Tombs and Oliver Allen, only a limited number of products were affected by tariffs in May, but the situation could escalate.&nbsp;&nbsp;They suggested that a broader inflationary impact is likely to emerge in June, as reported by Bloomberg.&nbsp;Sectors particularly exposed to trade frictions include consumer electronics, apparel, household appliances, and new vehicles.&nbsp;&nbsp;As highlighted by Bank of America economists Stephen Juneau and Jeseo Park, audio equipment prices jumped sharply in April, and more categories could follow if tariffs remain.&nbsp;Meanwhile, Wells Fargo analysts Sarah House and Nicole Cervi observed that companies initially coped with the tariff shock through inventory buffers and hopes of a policy rollback. But they warned, “as the higher tariff regime persists, shielding consumers from the costs is likely to become more challenging," as quoted by Bloomberg.&nbsp;&nbsp;Despite the pickup in inflation, the US Federal Reserve is not expected to raise interest rates at its upcoming policy meeting.&nbsp;&nbsp;Fed Chair Jerome Powell has previously said the central bank would assess trade impacts over time before making any move.<h2>Airfare and hotel prices provide some relief</h2>Interestingly, not all sectors are seeing rising prices. Services such as travel and accommodation appear to be moving in the opposite direction. Analysts expect continued softness in airfares and hotel rates, potentially due to reduced spending on leisure and international tourism.&nbsp;According to Bloomberg, BNP Paribas economist Andrew Schneider anticipates deflation in both air travel and hospitality, attributing the trend to lower demand.&nbsp;&nbsp;Similarly, Bloomberg Economics’ chief US economist Anna Wong has said that a slowdown in discretionary spending, especially among government and business travellers is likely pulling prices down.&nbsp;“Consumers and the public sector are cutting back on travel this year, and airfare inflation is still on a downward track,” Wong noted in her latest commentary, as per Bloomberg.&nbsp;<h2>World Bank warns of global slowdown, blames tariffs and uncertainty</h2>As the US wrestles with domestic price pressures, the international outlook is darkening. In its latest economic report, the World Bank forecasts the slowest decade of global growth since the 1960s.&nbsp;The Bank now sees global GDP expanding by just 2.3 per cent in 2025, a downgrade of 0.4 percentage points from its previous forecast in January. Growth in 2027 is expected to inch up to 2.6 per cent.&nbsp;Nearly two-thirds of all countries have seen their forecasts trimmed.&nbsp;The US is among the economies hit hardest by the downgrade. The World Bank cited ongoing trade tensions, rising tariffs, and weakening investor confidence as reasons for the reduced outlook for the US in both 2025 and 2026.&nbsp;In contrast, China’s growth forecast remained unchanged. The Bank said Beijing has sufficient fiscal tools to counter global shocks and navigate geopolitical instability.&nbsp;The report explicitly warned that if tariff escalation continues, it could cause a major rupture in global trade. “Global trade could seize up in the second half of this year, accompanied by a widespread collapse in confidence, surging uncertainty and turmoil in financial markets,” the Bank wrote.&nbsp;Despite these warnings, the World Bank stopped short of calling a global recession, saying the risk remains low—at under 10 per cent.&nbsp;The gloomy outlook echoes a recent OECD projection, which revised global growth expectations down to 2.9 per cent from 3.1 per cent.&nbsp;Meanwhile, a new round of US–China trade talks concluded in London this week with both sides agreeing on a tentative framework to ease tensions, including export curbs on key technologies.&nbsp;&nbsp;&nbsp;

As US inflation edges up, a World Bank warning signals the global economy may face its weakest decade since the 1960s.

America’s inflation engine is picking up speed again, just as global growth shows signs of long-term fatigue. A fresh reading on consumer prices is expected to confirm a modest increase, as early impacts of new US tariffs begin reaching shoppers. Meanwhile, a World Bank report has warned the world economy could be heading for its slowest decade since the 1960s. US inflation ticks up as tariff pressures mount Consumer prices in the United States are expected to rise at a faster pace in May, driven in part by early signs of cost pass-through from new trade tariffs. As per a Bloomberg survey of economists, the core Consumer Price Index (which excludes food and fuel) likely rose by 0.3 per cent in May, slightly higher than April’s 0.2 per cent gain. If confirmed, annual inflation would stand at 2.9 per cent, indicating a potential reversal of the cooling trend seen in early 2024. Some of this price pressure appears to be linked to import levies introduced under Donald Trump’s trade policy. While most retailers have so far absorbed the higher costs or used pre-tariff stock, this buffer is thinning. Walmart, for instance, has already warned that prices on some items may need to rise in the coming weeks. According to a note by Pantheon Macroeconomics economists Samuel Tombs and Oliver Allen, only a limited number of products were affected by tariffs in May, but the situation could escalate. They suggested that a broader inflationary impact is likely to emerge in June, as reported by Bloomberg. Sectors particularly exposed to trade frictions include consumer electronics, apparel, household appliances, and new vehicles. As highlighted by Bank of America economists Stephen Juneau and Jeseo Park, audio equipment prices jumped sharply in April, and more categories could follow if tariffs remain. Meanwhile, Wells Fargo analysts Sarah House and Nicole Cervi observed that companies initially coped with the tariff shock through inventory buffers and hopes of a policy rollback. But they warned, “as the higher tariff regime persists, shielding consumers from the costs is likely to become more challenging," as quoted by Bloomberg. Despite the pickup in inflation, the US Federal Reserve is not expected to raise interest rates at its upcoming policy meeting. Fed Chair Jerome Powell has previously said the central bank would assess trade impacts over time before making any move. Airfare and hotel prices provide some relief Interestingly, not all sectors are seeing rising prices. Services such as travel and accommodation appear to be moving in the opposite direction. Analysts expect continued softness in airfares and hotel rates, potentially due to reduced spending on leisure and international tourism. According to Bloomberg, BNP Paribas economist Andrew Schneider anticipates deflation in both air travel and hospitality, attributing the trend to lower demand. Similarly, Bloomberg Economics’ chief US economist Anna Wong has said that a slowdown in discretionary spending, especially among government and business travellers is likely pulling prices down. “Consumers and the public sector are cutting back on travel this year, and airfare inflation is still on a downward track,” Wong noted in her latest commentary, as per Bloomberg. World Bank warns of global slowdown, blames tariffs and uncertainty As the US wrestles with domestic price pressures, the international outlook is darkening. In its latest economic report, the World Bank forecasts the slowest decade of global growth since the 1960s. The Bank now sees global GDP expanding by just 2.3 per cent in 2025, a downgrade of 0.4 percentage points from its previous forecast in January. Growth in 2027 is expected to inch up to 2.6 per cent. Nearly two-thirds of all countries have seen their forecasts trimmed. The US is among the economies hit hardest by the downgrade. The World Bank cited ongoing trade tensions, rising tariffs, and weakening investor confidence as reasons for the reduced outlook for the US in both 2025 and 2026. In contrast, China’s growth forecast remained unchanged. The Bank said Beijing has sufficient fiscal tools to counter global shocks and navigate geopolitical instability. The report explicitly warned that if tariff escalation continues, it could cause a major rupture in global trade. “Global trade could seize up in the second half of this year, accompanied by a widespread collapse in confidence, surging uncertainty and turmoil in financial markets,” the Bank wrote. Despite these warnings, the World Bank stopped short of calling a global recession, saying the risk remains low—at under 10 per cent. The gloomy outlook echoes a recent OECD projection, which revised global growth expectations down to 2.9 per cent from 3.1 per cent. Meanwhile, a new round of US–China trade talks concluded in London this week with both sides agreeing on a tentative framework to ease tensions, including export curbs on key technologies.

US inflation is rising again as new tariffs begin pushing up consumer prices, amid concerns of a sluggish global economy.

Tariffs nudge US inflation higher in May, World Bank flags weakest decade for global growth

The World Bank has cut its forecast for global growth this year, and on Tuesday (June 10) warned that the 2020s are on course for the weakest performance for any decade since the 1960s.The Washington-based global bank published its twice-yearly Global Economic Prospects report, and reduced its forecast for global GDP growth this year to 2.3 per cent, down from 2.7 per cent in January.This would mark to be the slowest growth rate outside full-blown recessions since 2008, according to the bank.It further warned that the global growth in the first seven years of this decade is on course to average 2.5 per cent, which will be the slowest for any decade since the 1960s.<h2>Is Trump tariffs to be blamed?</h2>The World Bank blamed US President Donald Trump's trade war for the 2020s to be the weakest performance for any decade.After returning to the Oval Office, Trump has made several announcements, marking a major shift in the US policies, slapping tariffs on leading economies.With only a “tepid” recovery in global growth, to 2.4%, expected in 2026, the bank said this decade was likely to be the weakest since the 1960s.World Bank’s Chief Economist Indermit Gill said that decades of economic progress in developing countries had all but ground to a halt in recent years, with growth in investment and trade slowing and debt piling up.“Outside of Asia, the developing world is becoming a development-free zone,” he said.“It has been advertising itself for more than a decade. Growth in developing economies has ratcheted down for three decades – from 6% annually in the 2000s to 5% in the 2010s – to less than 4% in the 2020s.”The World Bank prediction assumes that Trump's high "reciprocal" tariffs, announced in April will not be reimposed when the 90-day "pause" he announced last month comes to an end.The bank urged governments to negotiate an end to the ongoing trade conflict. It further called on emerging markets and developing countries to rebuild their public finances by broadening their tax base.The global bank stressed that the situation could worsen further, if tariffs end up being higher than expected and uncertainty continues.“Risks to the global outlook remain tilted decidedly to the downside,” it added. “Growth could turn out to be lower if trade restrictions escalate or if policy uncertainty persists, which could also result in a buildup of financial stress.”

This would mark to be the slowest growth rate outside full-blown recessions since 2008, according to the bank.

The World Bank has cut its forecast for global growth this year, and on Tuesday (June 10) warned that the 2020s are on course for the weakest performance for any decade since the 1960s. The Washington-based global bank published its twice-yearly Global Economic Prospects report, and reduced its forecast for global GDP growth this year to 2.3 per cent, down from 2.7 per cent in January. This would mark to be the slowest growth rate outside full-blown recessions since 2008, according to the bank. It further warned that the global growth in the first seven years of this decade is on course to average 2.5 per cent, which will be the slowest for any decade since the 1960s. Is Trump tariffs to be blamed? The World Bank blamed US President Donald Trump's trade war for the 2020s to be the weakest performance for any decade. After returning to the Oval Office, Trump has made several announcements, marking a major shift in the US policies, slapping tariffs on leading economies. With only a “tepid” recovery in global growth, to 2.4%, expected in 2026, the bank said this decade was likely to be the weakest since the 1960s. World Bank’s Chief Economist Indermit Gill said that decades of economic progress in developing countries had all but ground to a halt in recent years, with growth in investment and trade slowing and debt piling up. “Outside of Asia, the developing world is becoming a development-free zone,” he said. “It has been advertising itself for more than a decade. Growth in developing economies has ratcheted down for three decades – from 6% annually in the 2000s to 5% in the 2010s – to less than 4% in the 2020s.” The World Bank prediction assumes that Trump's high "reciprocal" tariffs, announced in April will not be reimposed when the 90-day "pause" he announced last month comes to an end. The bank urged governments to negotiate an end to the ongoing trade conflict. It further called on emerging markets and developing countries to rebuild their public finances by broadening their tax base. The global bank stressed that the situation could worsen further, if tariffs end up being higher than expected and uncertainty continues. “Risks to the global outlook remain tilted decidedly to the downside,” it added. “Growth could turn out to be lower if trade restrictions escalate or if policy uncertainty persists, which could also result in a buildup of financial stress.”

This would mark to be the slowest growth rate outside full-blown recessions since 2008, according to the bank.

2020s weakest decade since 60s: World Bank's PREDICTION about worsening global economy | Is Trump tariffs to be blamed?

The World Bank (WB) has warned that climate change could erode up to 12 percent of Zimbabwe's gross domestic product (GDP) annually if the country does not implement robust measures to tackle the phenomenon.

Zimbabwe’s agricultural sector at risk, World Bank warns

The International Monetary Fund and the World Bank have raised alarms on the growing debt crisis gripping global economies. With a record national debt of 36 trillion dollars, the United States is confronted with a debt catastrophe. Donald Trump faces a significant debt risk as he returns to the White House. Take a look at this next report as we decode if America is heading for bankruptcy...

Global Debt Hits Record; Debt-To-GDP Ratios Surge

The war-torn nation of Myanmar is already struggling under the weight of high inflation, a falling currency, and power and labour shortages. Now, the world bank predicts that the country's gross domestic product will contract this fiscal year. Watch in for more details!

World Bank Predicts Myanmar's Economy To Contract This Year

The war-torn nation of Myanmar is already struggling under the weight of high inflation, a falling currency, and power and labour shortages. The World Bank predicts that the country's gross domestic product will contract this fiscal year.

In a study released on Wednesday by the World Bank, the situation is predicted to worsen in the aftermath of typhoon Yagi in September. The bank predicts a one per cent contraction in Myanmar's GDP for the current fiscal year ending in March 2025. 
 
That is down from an earlier projection of 1 per cent growth. The military junta projected a 3.8 per cent growth rate. The World Bank estimates that by 2025, the country's GDP will have contracted by 11 per cent from 2019 levels. 
 
Shocks from a 2021 military coup that sparked a civil war in the Southeast Asian nation are to blame for the drops. 
 
The study showed manufacturing, agriculture, and service sectors are being negatively impacted. This is weighed down by the ongoing power outages and shortages of imported raw supplies.

The World Bank said, "A further escalation in conflict, including in the run-up to possible elections in 2025, or another severe natural disaster could depress output across a range of sectors." 
 
The bank added, "If that happens, longer and broader disruptions may follow and plunge households deeper into poverty."

Additionally, the report claimed that supply lines and border trade have been disrupted. This is due to the current warfare that is affecting more than half of Myanmar's 330 townships. Part of the reason for the gloomy forecast is the internal scarcity of human capital. 
 
Labour shortages have been driven by the increasing outbound migration from Myanmar in the past several years. According to the United Nations, approximately 6 per cent of the population, or 3.5 million individuals, have been displaced since October 2023.

(With the inputs from the agencies)

The war-torn nation of Myanmar is already struggling under the weight of high inflation, a falling currency, and power and labour shortages. The World Bank predicts that the country's gross domestic product will contract this fiscal year.

The war-torn nation of Myanmar is already struggling under the weight of high inflation, a falling currency, and power and labour shortages. The World Bank predicts that the country's gross domestic product will contract this fiscal year. In a study released on Wednesday by the World Bank, the situation is predicted to worsen in the aftermath of typhoon Yagi in September. The bank predicts a one per cent contraction in Myanmar's GDP for the current fiscal year ending in March 2025. That is down from an earlier projection of 1 per cent growth. The military junta projected a 3.8 per cent growth rate. The World Bank estimates that by 2025, the country's GDP will have contracted by 11 per cent from 2019 levels. Shocks from a 2021 military coup that sparked a civil war in the Southeast Asian nation are to blame for the drops. The study showed manufacturing, agriculture, and service sectors are being negatively impacted. This is weighed down by the ongoing power outages and shortages of imported raw supplies. The World Bank said, "A further escalation in conflict, including in the run-up to possible elections in 2025, or another severe natural disaster could depress output across a range of sectors." The bank added, "If that happens, longer and broader disruptions may follow and plunge households deeper into poverty." Additionally, the report claimed that supply lines and border trade have been disrupted. This is due to the current warfare that is affecting more than half of Myanmar's 330 townships. Part of the reason for the gloomy forecast is the internal scarcity of human capital. Labour shortages have been driven by the increasing outbound migration from Myanmar in the past several years. According to the United Nations, approximately 6 per cent of the population, or 3.5 million individuals, have been displaced since October 2023. (With the inputs from the agencies)

World Bank predicts Myanmar's economy to contract this year

Finance Minister of India (FM), Nirmala Sitharaman has called for deeper dialogue to help countries meet debt obligations without compromising critical investments at the Global Sovereign Debt Roundtable (GSDR), held on the sidelines of the World Bank and International Monetary Fund (IMF) Annual Meetings 2024 in Washington, DC as detailed in a report by the Business Standard.

She also cautioned against contingency financing instruments stating that they can lead to deferred obligations, which may worsen future debt challenges.

What is GSDR?<o:p></o:p>

The objective of the Global Sovereign Debt Roundtable (GSDR) is to build greater common understanding among key stakeholders involved in debt restructurings, and work together on the current shortcomings in debt restructuring processes, both within and outside the Common Framework, and ways to address them.

Further, the GSDR brings together debtor countries and creditors to foster a greater common understanding among key stakeholders on debt sustainability, debt restructuring challenges, and solutions to address these issues.

Details of the roundtable<o:p></o:p>

The roundtable is co-chaired by the International Monetary Fund (IMF), World Bank, and the Group of Twenty (G20) presidency which is currently held by Brazil and includes official bilateral creditors, private creditors, and borrowing countries. The goal of the meeting is to have elaborate discussions on debt.

While participating in the fourth G20 Finance Ministers and Central Bank Governors meeting, the Finance Minister remarked that the reform agenda for multilateral development banks (MDBs) has progressed under recent presidencies.

“The political momentum from this group is driving MDBs to pursue major reforms,” she stated, appreciating Brazil’s G20 presidency for building on the mandate from the Leaders’ Summit in Delhi.

The FM emphasised that a pathway has been established to enable MDBs to effectively address global challenges and development financing requirements. “India looks forward to engaging with the South African presidency in advancing this agenda,” she added. The same was mentioned by the Finance Ministry, in asocial media platform X, “Under the #G20IndiaPresidency, the Union finance minister said that #MDBs were encouraged to evolve their vision, incentive structures, operational approaches, and financing capacities.”

During the GSDR conversation, the FM also advocated using the roundtable’s informal platform to better understand the perspectives of all parties, address concerns, and provide informed guidance to countries on the risks and benefits of these instruments.

She stressed the need for improving timeliness, transparency, and predictability while ensuring comparability of treatment among creditors. Sitharaman also highlighted the necessity of prioritising coordinated efforts to secure low-cost, long-term financing and targeted technical assistance to strengthen fiscal capacity and build resilience in vulnerable countries.

Chairing a roundtable discussion on disaster-resilient infrastructure, she underlined the threat of climate-induced risks to infrastructure and the critical services it supports, warning that such risks could undercut development gains.

Sitharaman said that India has achieved resilient economic growth over the years by investing not only in hard infrastructure but also in building institutional capacity through the establishment of national and state-level disaster management agencies.

Extending assistance to the Global South on shared challenges, she said, “Under the G20 India presidency, a disaster risk reduction working group was created to increase commitment to disaster and climate-resilient infrastructure and to prioritise stronger national financial frameworks for disaster risk reduction.”

<o:p>&nbsp;</o:p>

Finance Minister of India (FM), Nirmala Sitharaman has called for deeper dialogue to help countries meet debt obligations without compromising critical investments at the Global Sovereign Debt Roundtable (GSDR), held on the sidelines of the World Bank and International Monetary Fund (IMF) Annual Meetings 2024 in Washington, DC as detailed in a report by the Business Standard.

Finance Minister of India (FM), Nirmala Sitharaman has called for deeper dialogue to help countries meet debt obligations without compromising critical investments at the Global Sovereign Debt Roundtable (GSDR), held on the sidelines of the World Bank and International Monetary Fund (IMF) Annual Meetings 2024 in Washington, DC as detailed in a report by the Business Standard. She also cautioned against contingency financing instruments stating that they can lead to deferred obligations, which may worsen future debt challenges. What is GSDR? The objective of the Global Sovereign Debt Roundtable (GSDR) is to build greater common understanding among key stakeholders involved in debt restructurings, and work together on the current shortcomings in debt restructuring processes, both within and outside the Common Framework, and ways to address them. Further, the GSDR brings together debtor countries and creditors to foster a greater common understanding among key stakeholders on debt sustainability, debt restructuring challenges, and solutions to address these issues. Details of the roundtable The roundtable is co-chaired by the International Monetary Fund (IMF), World Bank, and the Group of Twenty (G20) presidency which is currently held by Brazil and includes official bilateral creditors, private creditors, and borrowing countries. The goal of the meeting is to have elaborate discussions on debt. While participating in the fourth G20 Finance Ministers and Central Bank Governors meeting, the Finance Minister remarked that the reform agenda for multilateral development banks (MDBs) has progressed under recent presidencies. “The political momentum from this group is driving MDBs to pursue major reforms,” she stated, appreciating Brazil’s G20 presidency for building on the mandate from the Leaders’ Summit in Delhi. The FM emphasised that a pathway has been established to enable MDBs to effectively address global challenges and development financing requirements. “India looks forward to engaging with the South African presidency in advancing this agenda,” she added. The same was mentioned by the Finance Ministry, in asocial media platform X, “Under the #G20IndiaPresidency, the Union finance minister said that #MDBs were encouraged to evolve their vision, incentive structures, operational approaches, and financing capacities.” During the GSDR conversation, the FM also advocated using the roundtable’s informal platform to better understand the perspectives of all parties, address concerns, and provide informed guidance to countries on the risks and benefits of these instruments. She stressed the need for improving timeliness, transparency, and predictability while ensuring comparability of treatment among creditors. Sitharaman also highlighted the necessity of prioritising coordinated efforts to secure low-cost, long-term financing and targeted technical assistance to strengthen fiscal capacity and build resilience in vulnerable countries. Chairing a roundtable discussion on disaster-resilient infrastructure, she underlined the threat of climate-induced risks to infrastructure and the critical services it supports, warning that such risks could undercut development gains. Sitharaman said that India has achieved resilient economic growth over the years by investing not only in hard infrastructure but also in building institutional capacity through the establishment of national and state-level disaster management agencies. Extending assistance to the Global South on shared challenges, she said, “Under the G20 India presidency, a disaster risk reduction working group was created to increase commitment to disaster and climate-resilient infrastructure and to prioritise stronger national financial frameworks for disaster risk reduction.”

FM Sitharaman pushes for comprehensive talks on global sovereign debt

The increasing market capitalisation, footprint, and structure of crypto-assets have prompted institutional investors and central banks to investigate potential exposures to these assets and determine if it is fair to include them in their portfolios.

While crypto-assets might play a role in central banks' reserve portfolios in the future, a white paper from the World Bank states that these instruments do not qualify at the moment in their current state. There has been some guidance from policymakers and standard-setting bodies.

However, the regulatory landscape for crypto-assets is still unclear. their value is very volatile, which makes them unreliable as a store of value. To qualify as instruments for reserve portfolios, crypto assets must undergo certain fundamental modifications.

What is the World Bank's take?

1. Decreased volatility needed

Crypto assets are not a good way for central banks to self-insure against shocks because their prices are highly volatile, with an annualised volatility of 70 per cent. This is far greater than the volatility of equities and gold.

2. Stronger custody &amp; safekeeping solutions

The loss or theft of crypto private keys, which are essential to digital assets like bearer instruments, might result in irretrievable loss. Essential for storage, access, and authentication are industry-grade solutions for managing and executing private keys that can resist fraud or cyberattacks.

3. More than enough decentralisation

Potential dangers exist in crypto-asset initiatives that are not adequately decentralised. So, they are subject to substantial control by a governing body or central party. Large investors are hesitant to take on and manage substantial exposures to crypto-assets. This is due to their limited liquidity and market capitalisation compared to more traditional currencies and asset classes.

However, derivatives markets have developed to control risks. The liquidity of the biggest crypto-assets - such as bitcoin and ether - has greatly increased.&nbsp;

4. Investment tools are readily available

Government bonds and other extremely safe investments are the norm for central banks. For the most part, crypto-assets don't perform anything useful on their own, like generating interest or dividends. There are still many unknowns and dangers in this experimental environment. This is despite the potential for "staking" to create revenue and the potential for DeFi apps to aid in the generation of returns on crypto assets.

5. Implementation of banking &amp; commerce protocols

Crypto assets must become a tool for cross-border investment and trade flows. This is to ensure reserve managers against trade and financial shocks. In such flows, crypto asset adoption is quite low.

Policymakers have achieved some headway into most of these concerns. However, there are still many important questions about the domestic and international regulation of crypto-assets. This includes the authority, missions, and instruments of relevant institutions.

The increasing market capitalisation, footprint, and structure of crypto-assets have prompted institutional investors and central banks to investigate potential exposures to these assets and determine if it is fair to include them in their portfolios.

The increasing market capitalisation, footprint, and structure of crypto-assets have prompted institutional investors and central banks to investigate potential exposures to these assets and determine if it is fair to include them in their portfolios. While crypto-assets might play a role in central banks' reserve portfolios in the future, a white paper from the World Bank states that these instruments do not qualify at the moment in their current state. There has been some guidance from policymakers and standard-setting bodies. However, the regulatory landscape for crypto-assets is still unclear. their value is very volatile, which makes them unreliable as a store of value. To qualify as instruments for reserve portfolios, crypto assets must undergo certain fundamental modifications. What is the World Bank's take? 1. Decreased volatility needed Crypto assets are not a good way for central banks to self-insure against shocks because their prices are highly volatile, with an annualised volatility of 70 per cent. This is far greater than the volatility of equities and gold. 2. Stronger custody & safekeeping solutions The loss or theft of crypto private keys, which are essential to digital assets like bearer instruments, might result in irretrievable loss. Essential for storage, access, and authentication are industry-grade solutions for managing and executing private keys that can resist fraud or cyberattacks. 3. More than enough decentralisation Potential dangers exist in crypto-asset initiatives that are not adequately decentralised. So, they are subject to substantial control by a governing body or central party. Large investors are hesitant to take on and manage substantial exposures to crypto-assets. This is due to their limited liquidity and market capitalisation compared to more traditional currencies and asset classes. However, derivatives markets have developed to control risks. The liquidity of the biggest crypto-assets - such as bitcoin and ether - has greatly increased. 4. Investment tools are readily available Government bonds and other extremely safe investments are the norm for central banks. For the most part, crypto-assets don't perform anything useful on their own, like generating interest or dividends. There are still many unknowns and dangers in this experimental environment. This is despite the potential for "staking" to create revenue and the potential for DeFi apps to aid in the generation of returns on crypto assets. 5. Implementation of banking & commerce protocols Crypto assets must become a tool for cross-border investment and trade flows. This is to ensure reserve managers against trade and financial shocks. In such flows, crypto asset adoption is quite low. Policymakers have achieved some headway into most of these concerns. However, there are still many important questions about the domestic and international regulation of crypto-assets. This includes the authority, missions, and instruments of relevant institutions.

World Bank argues against cryptos as reserve portfolio asset

As the world grapples with a multitude of crises, the World Bank has issued a stark warning regarding the state of global poverty. In a recent report, the institution highlighted how ongoing wars, escalating debt levels, the climate crisis, and the lingering effects of the Covid-19 pandemic have collectively undermined efforts to alleviate poverty worldwide according to detailed report by The Guardian. <o:p></o:p>

The report underscores that these compounding challenges have resulted in a staggering increase in poverty rates. According to the World Bank’s findings, nearly 700 million people are now living on less than $2.15 per day, a figure that has surged by 10 per cent since 2019. This alarming trend not only threatens the livelihoods of millions but also jeopardises the progress made in previous decades to combat poverty.<o:p></o:p>

Impact of conflict and debt on poverty<o:p></o:p>

The report elaborates on how conflicts in various regions have worsened poverty levels. Countries involved&nbsp;in wars experience significant disruptions to their economies and social structures. The World Bank noted that conflict-related displacement has reached unprecedented levels, with over 100 million people forced to flee their homes due to violence.<o:p></o:p>

Moreover, rising debt burdens have left many nations struggling to fund essential services. The institution revealed that around 60 per cent of low-income countries are currently at risk of or already experiencing debt distress. This financial strain limits governments' ability to invest in critical areas such as healthcare and education, further entrenching poverty.<o:p></o:p>

Climate change: A growing threat<o:p></o:p>

In addition to conflict and debt, climate change poses an existential threat to global poverty reduction efforts. The World Bank's report highlights that extreme weather events have become increasingly frequent and severe, disproportionately affecting vulnerable populations. Floods, droughts, and heatwaves not only destroy livelihoods but also disrupt food security.<o:p></o:p>

The report warns that without immediate action to address climate change, an estimated 130 million people could be pushed into extreme poverty by 2030. This grim projection serves as a clarion call for governments and organisations worldwide to prioritise sustainable development practices and invest in climate resilience.<o:p></o:p>

<o:p>&nbsp;</o:p>The role of Covid-19<o:p></o:p>

The Covid-19 pandemic has further complicated these challenges. The World Bank stated that while many countries are recovering from the immediate health crisis, the economic repercussions continue to reverberate through societies. Job losses and reduced incomes have left countless families struggling to make ends meet.<o:p></o:p>

In light of these multifaceted crises, the World Bank is urging governments to adopt comprehensive strategies aimed at combating poverty. This includes increasing investments in social protection systems, enhancing access to education and healthcare, and promoting economic diversification.<o:p></o:p>

The World Bank's report paints a difficult picture of the current state of global poverty amid wars, debt crises, climate change, and the ongoing effects of Covid-19. As millions face unprecedented challenges, it is imperative for policymakers to act decisively to reverse these trends and safeguard the future of vulnerable populations worldwide. The time for action is now; failure to respond could result in irreversible damage to global anti-poverty efforts for generations to come.<o:p></o:p>

As the world grapples with a multitude of crises, the World Bank has issued a stark warning regarding the state of global poverty. In a recent report, the institution highlighted how ongoing wars, escalating debt levels, the climate crisis, and the lingering effects of the Covid-19 pandemic have collectively undermined efforts to alleviate poverty worldwide according to detailed report by The Guardian.

As the world grapples with a multitude of crises, the World Bank has issued a stark warning regarding the state of global poverty. In a recent report, the institution highlighted how ongoing wars, escalating debt levels, the climate crisis, and the lingering effects of the Covid-19 pandemic have collectively undermined efforts to alleviate poverty worldwide according to detailed report by The Guardian. The report underscores that these compounding challenges have resulted in a staggering increase in poverty rates. According to the World Bank’s findings, nearly 700 million people are now living on less than $2.15 per day, a figure that has surged by 10 per cent since 2019. This alarming trend not only threatens the livelihoods of millions but also jeopardises the progress made in previous decades to combat poverty. Impact of conflict and debt on poverty The report elaborates on how conflicts in various regions have worsened poverty levels. Countries involved in wars experience significant disruptions to their economies and social structures. The World Bank noted that conflict-related displacement has reached unprecedented levels, with over 100 million people forced to flee their homes due to violence. Moreover, rising debt burdens have left many nations struggling to fund essential services. The institution revealed that around 60 per cent of low-income countries are currently at risk of or already experiencing debt distress. This financial strain limits governments' ability to invest in critical areas such as healthcare and education, further entrenching poverty. Climate change: A growing threat In addition to conflict and debt, climate change poses an existential threat to global poverty reduction efforts. The World Bank's report highlights that extreme weather events have become increasingly frequent and severe, disproportionately affecting vulnerable populations. Floods, droughts, and heatwaves not only destroy livelihoods but also disrupt food security. The report warns that without immediate action to address climate change, an estimated 130 million people could be pushed into extreme poverty by 2030. This grim projection serves as a clarion call for governments and organisations worldwide to prioritise sustainable development practices and invest in climate resilience. The role of Covid-19 The Covid-19 pandemic has further complicated these challenges. The World Bank stated that while many countries are recovering from the immediate health crisis, the economic repercussions continue to reverberate through societies. Job losses and reduced incomes have left countless families struggling to make ends meet. In light of these multifaceted crises, the World Bank is urging governments to adopt comprehensive strategies aimed at combating poverty. This includes increasing investments in social protection systems, enhancing access to education and healthcare, and promoting economic diversification. The World Bank's report paints a difficult picture of the current state of global poverty amid wars, debt crises, climate change, and the ongoing effects of Covid-19. As millions face unprecedented challenges, it is imperative for policymakers to act decisively to reverse these trends and safeguard the future of vulnerable populations worldwide. The time for action is now; failure to respond could result in irreversible damage to global anti-poverty efforts for generations to come.

Wars, debt, and climate crisis stall global anti-poverty efforts, warns World Bank

The World Bank has issued a stark warning regarding the economic plight of the world’s poorest nations, indicating that 26 of these countries are in their most precarious financial position since 2006. This alarming revelation underlines the growing challenges faced by low-income economies amid a backdrop of escalating global crises, including climate change and geopolitical tension as detailed in a report by Reuters.<o:p></o:p>

Economic indicators reveal distress<o:p></o:p>

The report further stated that, the 26 poorest economies studied, which have annual per-capita incomes of less than $1,145, are increasingly reliant on the International Development Association&nbsp;(IDA) grants and near-zero interest rate loans as market financing has largely dried up, the World Bank said. Their average debt-to-GDP ratio of 72 per cent is at an 18-year high and half of the group are either in debt distress or at high risk of it.<o:p></o:p>

Impact on poverty and development goals<o:p></o:p>

Some of the countries in the study are in sub-Saharan Africa, from Ethiopia to Chad and Congo, but the list also includes Afghanistan and Yemen. These are basically some of the worst affected nations financially. <o:p></o:p>

Two thirds of the 26 poorest countries are either in armed conflicts or have difficulty maintaining order because of institutional and social fragility, which inhibit foreign investment, and nearly all export commodities, exposing them to frequent boom-and-bust cycles, the report said.<o:p></o:p>

"At a time when much of the world simply backed away from the poorest countries, IDA has been their lifeline," World Bank chief economist Indermit Gill said in a statement. "Over the past five years, it has poured most of its financial resources into the 26 low-income economies, keeping them afloat through the historic setbacks they suffered."<o:p></o:p>

The role of international cooperation<o:p></o:p>

As the world grapples with these pressing issues, international cooperation is more crucial than ever. The World Bank has also urged&nbsp;developed nations and international financial institutions to step up their efforts in providing assistance to low-income countries. This includes not only financial aid but also technical support to enhance local capacities for sustainable growth.<o:p></o:p>

IDA normally is replenished every three years with contributions from World Bank shareholding countries. It raised a record $93 billion in 2021 and World Bank President Ajay Banga is aiming to exceed that with more than $100 billion in pledges by December 6.<o:p></o:p>

Hence, the World Bank's findings serve as an important call for action. The economic struggles faced by the world’s poorest countries represent a significant challenge not just for those nations but for global stability and development as a whole. Immediate and coordinated efforts are essential to ensure that these countries can recover and thrive in an increasingly complex global landscape.<o:p></o:p>

The World Bank has issued a stark warning regarding the economic plight of the world’s poorest nations, indicating that 26 of these countries are in their most precarious financial position since 2006.

The World Bank has issued a stark warning regarding the economic plight of the world’s poorest nations, indicating that 26 of these countries are in their most precarious financial position since 2006. This alarming revelation underlines the growing challenges faced by low-income economies amid a backdrop of escalating global crises, including climate change and geopolitical tension as detailed in a report by Reuters. Economic indicators reveal distress The report further stated that, the 26 poorest economies studied, which have annual per-capita incomes of less than $1,145, are increasingly reliant on the International Development Association (IDA) grants and near-zero interest rate loans as market financing has largely dried up, the World Bank said. Their average debt-to-GDP ratio of 72 per cent is at an 18-year high and half of the group are either in debt distress or at high risk of it. Impact on poverty and development goals Some of the countries in the study are in sub-Saharan Africa, from Ethiopia to Chad and Congo, but the list also includes Afghanistan and Yemen. These are basically some of the worst affected nations financially. Two thirds of the 26 poorest countries are either in armed conflicts or have difficulty maintaining order because of institutional and social fragility, which inhibit foreign investment, and nearly all export commodities, exposing them to frequent boom-and-bust cycles, the report said. "At a time when much of the world simply backed away from the poorest countries, IDA has been their lifeline," World Bank chief economist Indermit Gill said in a statement. "Over the past five years, it has poured most of its financial resources into the 26 low-income economies, keeping them afloat through the historic setbacks they suffered." The role of international cooperation As the world grapples with these pressing issues, international cooperation is more crucial than ever. The World Bank has also urged developed nations and international financial institutions to step up their efforts in providing assistance to low-income countries. This includes not only financial aid but also technical support to enhance local capacities for sustainable growth. IDA normally is replenished every three years with contributions from World Bank shareholding countries. It raised a record $93 billion in 2021 and World Bank President Ajay Banga is aiming to exceed that with more than $100 billion in pledges by December 6. Hence, the World Bank's findings serve as an important call for action. The economic struggles faced by the world’s poorest countries represent a significant challenge not just for those nations but for global stability and development as a whole. Immediate and coordinated efforts are essential to ensure that these countries can recover and thrive in an increasingly complex global landscape.

World Bank reports that 26 poorest countries are in worst financial shape since 2006

The World Bank has announced a positive outlook for the Sri Lankan economy, which has stabilised following a severe crisis in 2022. With critical structural and policy reforms in place, the country is expected to experience a growth rate of 4.4 per cent in 2024, significantly higher than the previous projection of 2.2 per cent. However, the World Bank has also warned that while the situation is improving, Sri Lanka is not yet fully out of danger.<o:p></o:p>

Gevorg Sargsyan, the World Bank's country director, highlighted the encouraging news during a recent press briefing as detailed in a report by the Press Trust of India. He noted that the economy has shown resilience by growing faster than anticipated but cautioned that challenges remain. "The good news is that it grew faster than most expected but the not so good news is that it is not out of the woods yet," Sargsyan stated.<o:p></o:p>

The backdrop to this recovery includes Sri Lanka's declaration of its first-ever sovereign default in April 2022, marking a significant milestone since gaining independence from Britain in 1948. The country is currently engaged in negotiations with the International Monetary Fund (IMF) regarding the next tranche of a $2.9 billion bailout package. The IMF has made external debt restructuring a condition for further financial assistance.

In its bi-annual Sri Lanka Development Update titled "Opening Up to the Future," released on Thursday i.e., October 10, the World Bank cautioned that the recovery remains fragile and dependent on maintaining macroeconomic stability, successfully restructuring debt, and continuing structural reforms aimed at boosting medium-term growth and reducing poverty.

Sargsyan pointed out that Sri Lanka achieved remarkable milestones in 2023, including four consecutive quarters of growth and a current account surplus. He also mentioned that there is untapped export potential estimated at USD 10 billion annually, which could create approximately 150,000 new jobs if the necessary reforms are implemented effectively.

Looking ahead, the World Bank report projects modest growth of 3.5 per cent for 2025, with poverty levels expected to gradually decline but remain above 20 per cent until at least 2026. This highlights ongoing economic challenges that will need to be addressed to ensure sustainable progress.

The newly elected government led by President Anura Kumara Dissanayake has committed to adhering to the IMF's stringent bailout programme initiated by his predecessor Ranil Wickremesinghe. However, Dissanayake has expressed intentions to renegotiate some of the tougher conditions that have placed significant economic burdens on the citizens of the country as he prepares for upcoming elections.<o:p></o:p>

Therefore, as Sri Lanka navigates its path towards recovery, it remains crucial for the government and policymakers to implement effective reforms and maintain stability to foster sustainable economic growth and alleviate poverty in the coming years.

The World Bank has announced a positive outlook for the Sri Lankan economy, which has stabilised following a severe crisis in 2022. With critical structural and policy reforms in place, the country is expected to experience a growth rate of 4.

The World Bank has announced a positive outlook for the Sri Lankan economy, which has stabilised following a severe crisis in 2022. With critical structural and policy reforms in place, the country is expected to experience a growth rate of 4.4 per cent in 2024, significantly higher than the previous projection of 2.2 per cent. However, the World Bank has also warned that while the situation is improving, Sri Lanka is not yet fully out of danger. Gevorg Sargsyan, the World Bank's country director, highlighted the encouraging news during a recent press briefing as detailed in a report by the Press Trust of India. He noted that the economy has shown resilience by growing faster than anticipated but cautioned that challenges remain. "The good news is that it grew faster than most expected but the not so good news is that it is not out of the woods yet," Sargsyan stated. The backdrop to this recovery includes Sri Lanka's declaration of its first-ever sovereign default in April 2022, marking a significant milestone since gaining independence from Britain in 1948. The country is currently engaged in negotiations with the International Monetary Fund (IMF) regarding the next tranche of a $2.9 billion bailout package. The IMF has made external debt restructuring a condition for further financial assistance. In its bi-annual Sri Lanka Development Update titled "Opening Up to the Future," released on Thursday i.e., October 10, the World Bank cautioned that the recovery remains fragile and dependent on maintaining macroeconomic stability, successfully restructuring debt, and continuing structural reforms aimed at boosting medium-term growth and reducing poverty. Sargsyan pointed out that Sri Lanka achieved remarkable milestones in 2023, including four consecutive quarters of growth and a current account surplus. He also mentioned that there is untapped export potential estimated at USD 10 billion annually, which could create approximately 150,000 new jobs if the necessary reforms are implemented effectively. Looking ahead, the World Bank report projects modest growth of 3.5 per cent for 2025, with poverty levels expected to gradually decline but remain above 20 per cent until at least 2026. This highlights ongoing economic challenges that will need to be addressed to ensure sustainable progress. The newly elected government led by President Anura Kumara Dissanayake has committed to adhering to the IMF's stringent bailout programme initiated by his predecessor Ranil Wickremesinghe. However, Dissanayake has expressed intentions to renegotiate some of the tougher conditions that have placed significant economic burdens on the citizens of the country as he prepares for upcoming elections. Therefore, as Sri Lanka navigates its path towards recovery, it remains crucial for the government and policymakers to implement effective reforms and maintain stability to foster sustainable economic growth and alleviate poverty in the coming years.

Sri Lankan economy stabilised with projected growth of 4.4%, says World Bank

China's economic outlook is facing a significant downturn, with the World Bank projecting a decrease in growth to 4.3 per cent for 2025. This marks a decline from the previously estimated 4.8 per cent, as outlined in a recent economic update released on Tuesday.

While this figure represents a slight increase of 0.3 per cent compared to earlier forecasts made in April, it underlines&nbsp;the ongoing uncertainty surrounding the effectiveness of Beijing's recent stimulus measures according to a detailed report by CNBC.

Temporary boost from stimulus measures<o:p></o:p>

The World Bank’s report highlights that although there has been a temporary uplift in investor sentiment following the rollout of various economic measures by the Chinese government, this boost is not expected to translate into sustained growth.

Aaditya Mattoo, the World Bank's chief economist for East Asia and the Pacific, expressed concerns during an interview with CNBC's 'Street Signs Asia'. He pointed out that the real challenge lies in whether these stimulus efforts can alleviate consumer anxieties related to stagnant wages and diminishing property revenues.

Mattoo elaborated on the current consumer landscape in China, indicating that fears surrounding health, aging, and unemployment continue to dampen spending. The lack of robust consumer expenditure is a critical factor contributing to the forecasted slowdown. Furthermore, ongoing challenges such as weak property markets and an aging demographic are compounding these issues.

Stimulus focused on supply rather than demand<o:p></o:p>

James, head of Asia-Pacific research at JPMorgan, echoed Mattoo's sentiments regarding the nature of the stimulus initiatives. He noted that the focus appears to be predominantly on enhancing supply and investment rather than addressing consumer demand directly.

"The million-dollar question in China right now is whether the stimulus will primarily enhance the supply side or ultimately translate into increased consumer demand," he remarked. Currently, analysts do not anticipate a significant shift towards bolstering consumer spending as a result of these measures.

To foster sustainable economic growth, the World Bank has consistently advocated for more assertive policy measures from China. These include fostering competition, improving infrastructure, and reforming the education system. However, Mattoo cautioned that while recent stimulus efforts may provide short-term relief, they cannot replace essential structural reforms necessary for long-term economic stability.

Regional implications of China's slowdown<o:p></o:p>

The implications of China's economic deceleration extend beyond its borders. The World Bank forecasts that other countries in East Asia and the Pacific will experience growth of 4.7 per cent this year, with an anticipated rise to 4.9 per cent next year. This growth is expected to be driven by a recovery in exports and improved financial conditions across the region.

However, as China’s economy slows down, it becomes increasingly vital for neighbouring countries to cultivate additional domestic growth drivers. The dependence and relation of these economies with each other means that any downturn in China could have ripple effects throughout East Asia and beyond.

Therefore, while recent stimulus measures have provided a temporary boost to China's economy, significant challenges remain that could hinder sustainable growth moving forward. The focus must shift towards addressing consumer concerns and implementing structural reforms if China aims to maintain its role as a key driver of regional economic performance.

China's economic outlook is facing a significant downturn, with the World Bank projecting a decrease in growth to 4.3 per cent for 2025. This marks a decline from the previously estimated 4.

China's economic outlook is facing a significant downturn, with the World Bank projecting a decrease in growth to 4.3 per cent for 2025. This marks a decline from the previously estimated 4.8 per cent, as outlined in a recent economic update released on Tuesday. While this figure represents a slight increase of 0.3 per cent compared to earlier forecasts made in April, it underlines the ongoing uncertainty surrounding the effectiveness of Beijing's recent stimulus measures according to a detailed report by CNBC. Temporary boost from stimulus measures The World Bank’s report highlights that although there has been a temporary uplift in investor sentiment following the rollout of various economic measures by the Chinese government, this boost is not expected to translate into sustained growth. Aaditya Mattoo, the World Bank's chief economist for East Asia and the Pacific, expressed concerns during an interview with CNBC's 'Street Signs Asia'. He pointed out that the real challenge lies in whether these stimulus efforts can alleviate consumer anxieties related to stagnant wages and diminishing property revenues. Mattoo elaborated on the current consumer landscape in China, indicating that fears surrounding health, aging, and unemployment continue to dampen spending. The lack of robust consumer expenditure is a critical factor contributing to the forecasted slowdown. Furthermore, ongoing challenges such as weak property markets and an aging demographic are compounding these issues. Stimulus focused on supply rather than demand James, head of Asia-Pacific research at JPMorgan, echoed Mattoo's sentiments regarding the nature of the stimulus initiatives. He noted that the focus appears to be predominantly on enhancing supply and investment rather than addressing consumer demand directly. "The million-dollar question in China right now is whether the stimulus will primarily enhance the supply side or ultimately translate into increased consumer demand," he remarked. Currently, analysts do not anticipate a significant shift towards bolstering consumer spending as a result of these measures. To foster sustainable economic growth, the World Bank has consistently advocated for more assertive policy measures from China. These include fostering competition, improving infrastructure, and reforming the education system. However, Mattoo cautioned that while recent stimulus efforts may provide short-term relief, they cannot replace essential structural reforms necessary for long-term economic stability. Regional implications of China's slowdown The implications of China's economic deceleration extend beyond its borders. The World Bank forecasts that other countries in East Asia and the Pacific will experience growth of 4.7 per cent this year, with an anticipated rise to 4.9 per cent next year. This growth is expected to be driven by a recovery in exports and improved financial conditions across the region. However, as China’s economy slows down, it becomes increasingly vital for neighbouring countries to cultivate additional domestic growth drivers. The dependence and relation of these economies with each other means that any downturn in China could have ripple effects throughout East Asia and beyond. Therefore, while recent stimulus measures have provided a temporary boost to China's economy, significant challenges remain that could hinder sustainable growth moving forward. The focus must shift towards addressing consumer concerns and implementing structural reforms if China aims to maintain its role as a key driver of regional economic performance.

China's growth to slow next year despite boost from stimulus, World Bank warns

The World Bank has approved a $1.57 billion financing package for Nigeria under a new programme to support its health and education sectors and help provide sustainable power. Watch in for more details!

World Bank Approves $1.57 Billion for Nigeria

Global leaders are calling for urgent access to climate finance as they grapple with the escalating impacts of climate change. UN Chief António Guterres has issued a stark warning, stating that the "world is heading off the rails" if immediate action isn't taken.

Nations Call For Climate Finance: 'World Is Heading Off The Rails,' UN Chief | WION Climate Tracker

The world bank has achieved a significant milestone in its climate financing efforts. In the last fiscal year, the bank delivered a record 42.6 billion dollars in climate-related funding. This marks a 10 percent increase from the previous year.

World Bank Sets Record In Climate Financing: Major Boost For Sustainability!

In a bid to bolster its struggling economy, Bangladesh has urgently requested $5 billion in financial assistance from leading international lenders, including the International Monetary Fund (IMF), World Bank, and Japan International Cooperation Agency (JICA), according to Muhammad Yunus, the head of the interim government as detailed in a report by Reuters.

The $5 billion request comprises $3 billion from the IMF, $1 billion from the World Bank, and an additional $1 billion from JICA. The government is also negotiating for lower interest rates and extended loan tenures from Russia and China to help navigate the economic fallout of rising global prices due to the Russia-Ukraine conflict.

"We are also negotiating for lower interest rates and extended loan tenures from Russia and China," Yunus said in a televised address to the South Asian nation, as the government grapples with mounting foreign payments.

Bangladesh's $450-billion economy has been under immense pressure since the war sharply increased the cost of fuel and food imports, forcing it to seek financial support from the IMF last year in the form of a $4.7-billion bailout.

Goal of the Interim Government<o:p></o:p>

The interim administration's primary goal is to guide the nation through a peaceful transition, culminating in new elections. However, the economic turmoil, worsened by global pressures, has put additional strain on the nation's financial stability.

Yunus also announced plans to establish six new commissions aimed at reforming critical sectors, including the constitution, the electoral system, the judiciary, the police, the Anti-Corruption Commission, and public administration. These commissions will investigate specific areas and offer recommendations for reforms. "We plan to expand this approach by forming additional commissions to tackle other important matters," Yunus said.

The six commissions are expected to be fully operational by October 1 and to complete their work within three months. In the final phase, a detailed outline of the proposed reforms will be developed after a consultation period of three to seven days, ensuring that a wide range of perspectives are incorporated into the reform process.

Hence, as Bangladesh navigates these challenging times, the government's efforts to secure emergency funds and implement comprehensive reforms will go a long way in stabilising the economy and paving the way for a brighter future for the citizens of Bangladesh.

In a bid to bolster its struggling economy, Bangladesh has urgently requested $5 billion in financial assistance from leading international lenders, including the International Monetary Fund (IMF), World Bank, and Japan International Cooperation Agency (JICA), according to Muhammad Yunus, the head of the interim government as detailed in a report by Reuters.

In a bid to bolster its struggling economy, Bangladesh has urgently requested $5 billion in financial assistance from leading international lenders, including the International Monetary Fund (IMF), World Bank, and Japan International Cooperation Agency (JICA), according to Muhammad Yunus, the head of the interim government as detailed in a report by Reuters. The $5 billion request comprises $3 billion from the IMF, $1 billion from the World Bank, and an additional $1 billion from JICA. The government is also negotiating for lower interest rates and extended loan tenures from Russia and China to help navigate the economic fallout of rising global prices due to the Russia-Ukraine conflict. "We are also negotiating for lower interest rates and extended loan tenures from Russia and China," Yunus said in a televised address to the South Asian nation, as the government grapples with mounting foreign payments. Bangladesh's $450-billion economy has been under immense pressure since the war sharply increased the cost of fuel and food imports, forcing it to seek financial support from the IMF last year in the form of a $4.7-billion bailout. Goal of the Interim Government The interim administration's primary goal is to guide the nation through a peaceful transition, culminating in new elections. However, the economic turmoil, worsened by global pressures, has put additional strain on the nation's financial stability. Yunus also announced plans to establish six new commissions aimed at reforming critical sectors, including the constitution, the electoral system, the judiciary, the police, the Anti-Corruption Commission, and public administration. These commissions will investigate specific areas and offer recommendations for reforms. "We plan to expand this approach by forming additional commissions to tackle other important matters," Yunus said. The six commissions are expected to be fully operational by October 1 and to complete their work within three months. In the final phase, a detailed outline of the proposed reforms will be developed after a consultation period of three to seven days, ensuring that a wide range of perspectives are incorporated into the reform process. Hence, as Bangladesh navigates these challenging times, the government's efforts to secure emergency funds and implement comprehensive reforms will go a long way in stabilising the economy and paving the way for a brighter future for the citizens of Bangladesh.

Bangladesh seeks $5 billion in emergency funds to boost dwindling forex reserves

World Bank President Ajay Banga said on Friday that young people in the Pacific Island nation of Tuvalu need training to help them move and adapt to climate change as he visited the frontline of the battle against rising sea levels.

World Bank Chief Ajay Banga visits Tuvalu as it battles rising sea levels

In a significant boost to India's economic trajectory, the World Bank has upgraded its growth forecast for the financial year 2024-25 to 7 per cent, up from its earlier estimate of 6.6 per cent. This revision reflects the country's impressive economic performance, which has positioned India as the fastest-growing major economy globally.<o:p></o:p>

Strong economic foundations<o:p></o:p>

The Indian economy's robust growth is attributed to several key factors. In the financial year 2023-24, India achieved an impressive 8.2 per cent growth rate, driven by substantial public infrastructure investments and a surge in household real estate investments. The manufacturing sector played a crucial role, growing by 9.9 per cent, while resilient services activity helped offset the underperformance in the agriculture sector.<o:p></o:p>

"India was the fastest-growing major economy in FY24 at 8.2 per cent, and now it's growing at a good pace," noted Auguste Tano Kouame, the World Bank's Country Director for India. This growth momentum is expected to continue, with the World Bank projecting strong growth for FY26 and FY27 at 6.7 per cent and 6.8 per cent, respectively.<o:p></o:p>

Further, the medium-term outlook for India remains positive, despite global growth remaining subdued compared to pre-pandemic levels. The report highlights that sustained growth in the services sector, including the expansion of Global Capability Centers, and an expected strengthening of the manufacturing sector, will continue to drive economic expansion. Government initiatives such as the PM Gati Shakti master plan to enhance logistics infrastructure and the trade infrastructure for exports scheme are also expected to contribute significantly.<o:p></o:p>

One of the most promising aspects of India's economic growth is the decline in inflation. Headline inflation is expected to continue to decline from an average of 5.4 per cent in FY23-24 to 4.5 per cent in FY24-25. This decline, coupled with robust growth, is anticipated to reduce extreme and moderate poverty in the country.<o:p></o:p>

"India's robust growth prospects along with declining inflation will help to reduce extreme poverty," said Auguste Tano Kouame. He also emphasized the importance of diversifying India's export basket to include sectors such as textiles, apparel, footwear, electronics, and green technology to harness its global trade potential.<o:p></o:p>

Fiscal consolidation and trade opportunities<o:p></o:p>

The World Bank report also underscores the importance of fiscal consolidation. With robust revenue growth and further fiscal consolidation, the debt-to-GDP ratio is projected to decline from 83.9 per cent in FY24 to 82 per cent by FY27. The current account deficit is expected to remain within the range of 1-1.6 per cent of GDP up to FY27.<o:p></o:p>

India's trade potential is another critical area highlighted in the report. The World Bank suggests that India can boost its growth further by integrating more deeply into global value chains, which will create opportunities for innovation and productivity growth. Reducing trade costs, lowering trade barriers, and deepening trade integration are recommended strategies to achieve the $1 trillion merchandise export target by 2030.<o:p></o:p>

While the outlook is positive, the report also acknowledges external risks such as geopolitical tensions and resurgent inflation, which could impact commodity prices and global interest rates. However, these risks are seen as manageable given India's strong economic fundamentals.<o:p></o:p>

<o:p>&nbsp;</o:p>

In a significant boost to India's economic trajectory, the World Bank has upgraded its growth forecast for the financial year 2024-25 to 7 per cent, up from its earlier estimate of 6.

In a significant boost to India's economic trajectory, the World Bank has upgraded its growth forecast for the financial year 2024-25 to 7 per cent, up from its earlier estimate of 6.6 per cent. This revision reflects the country's impressive economic performance, which has positioned India as the fastest-growing major economy globally. Strong economic foundations The Indian economy's robust growth is attributed to several key factors. In the financial year 2023-24, India achieved an impressive 8.2 per cent growth rate, driven by substantial public infrastructure investments and a surge in household real estate investments. The manufacturing sector played a crucial role, growing by 9.9 per cent, while resilient services activity helped offset the underperformance in the agriculture sector. "India was the fastest-growing major economy in FY24 at 8.2 per cent, and now it's growing at a good pace," noted Auguste Tano Kouame, the World Bank's Country Director for India. This growth momentum is expected to continue, with the World Bank projecting strong growth for FY26 and FY27 at 6.7 per cent and 6.8 per cent, respectively. Further, the medium-term outlook for India remains positive, despite global growth remaining subdued compared to pre-pandemic levels. The report highlights that sustained growth in the services sector, including the expansion of Global Capability Centers, and an expected strengthening of the manufacturing sector, will continue to drive economic expansion. Government initiatives such as the PM Gati Shakti master plan to enhance logistics infrastructure and the trade infrastructure for exports scheme are also expected to contribute significantly. One of the most promising aspects of India's economic growth is the decline in inflation. Headline inflation is expected to continue to decline from an average of 5.4 per cent in FY23-24 to 4.5 per cent in FY24-25. This decline, coupled with robust growth, is anticipated to reduce extreme and moderate poverty in the country. "India's robust growth prospects along with declining inflation will help to reduce extreme poverty," said Auguste Tano Kouame. He also emphasized the importance of diversifying India's export basket to include sectors such as textiles, apparel, footwear, electronics, and green technology to harness its global trade potential. Fiscal consolidation and trade opportunities The World Bank report also underscores the importance of fiscal consolidation. With robust revenue growth and further fiscal consolidation, the debt-to-GDP ratio is projected to decline from 83.9 per cent in FY24 to 82 per cent by FY27. The current account deficit is expected to remain within the range of 1-1.6 per cent of GDP up to FY27. India's trade potential is another critical area highlighted in the report. The World Bank suggests that India can boost its growth further by integrating more deeply into global value chains, which will create opportunities for innovation and productivity growth. Reducing trade costs, lowering trade barriers, and deepening trade integration are recommended strategies to achieve the $1 trillion merchandise export target by 2030. While the outlook is positive, the report also acknowledges external risks such as geopolitical tensions and resurgent inflation, which could impact commodity prices and global interest rates. However, these risks are seen as manageable given India's strong economic fundamentals.

World Bank boosts India's FY25 growth forecast to 7%, citing robust economic performance

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