Report: World economy to grow by 3.1 pct annually in the remaining 12MP period

In its Mid-Term Review of the 12MP report released today, the ministry said the emerging markets and developing economies' gross domestic product would expand by 4.0 per cent during the period, while the advanced economies would grow by 1.6 per cent, led by the United States.

"World trade is expected to moderate by 3.1 per cent per annum, attributed to several factors that have dampened global demand.

"High inflation and cost of living, tighter monetary policy, global banking system turmoil, geopolitical tensions, the resurgence of Covid-19 cases and the emergence of a new global health threat are expected to weigh on world economic outlook," it said.

Additionally, the ministry expects the world economy to grow by 3.8 per cent annually in the full period of the plan (2021-2025).

The emerging markets and developing economies would likely record 4.6 per cent annual growth, while advanced economies would grow by 2.6 per cent.

During the review period (2021-2022), the ministry said the world economy recovered from the Covid-19 pandemic and grew by 4.9 per cent annually, with emerging markets and developing economies expanding by 5.4 per cent yearly, while advanced economies rose 4.0 per cent.

World inflation increased by 6.7 per cent per annum following the prolonged Russia-Ukraine conflict and high commodity prices, it added.