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Global Economy is in Low-Productivity Cycle, According to Study

GENEVA – Ten years after the global financial crisis, the world economy remains locked in a cycle of low or flat productivity growth, according to a study published on the website of the World Economic Forum (WEF) on Thursday.
This year’s Global Competitiveness Report, which provides an annual evaluation of the countries boosting productivity and economic growth, warns that ‘The world is at a social, environmental and economic tipping point.’
Moderate growth, growing inequalities and the acceleration of climate change provide the context for a violent reaction against capitalism, globalization, technology and the elites, the document adds.
The report notes the international governance system is stagnated and growing trade and geopolitical tensions are fueling uncertainty.
‘This holds back investment and increases the risk of supply shocks: disruptions to global supply chains, sudden price spikes or interruptions in the availability of key resources,’ it warns.
Despite the unprecedented injection of ten trillion dollars by central banks, which prevented a deeper recession, this is not enough ‘to catalyse the allocation of resources towards productivity enhancing investments in the private and public sectors,’ according to the report.
G20 economies in the world’s top ten are Japan (sixth), Germany (seventh) and the United Kingdom (ninth).
Meanwhile, Asia-Pacific is the world’s most competitive region, followed by Europe and North America.
According to the World Economic Forum (WEF), the world will fail to comply with the Sustainable Development Goals by 2030.
(Sahar News Monitoring Desk)

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