World economy slows down, major recession after 1970: World Bank

New delhi date. January 9, 2020, Thursday

The entire world economy has slowed down and the world is witnessing a major recession since 1970, the World Bank said in its latest report. The World Bank has also issued a warning about the global debt crisis.

He appealed to the governments of various countries not to sit down just because the interest rate is low because the problem is so serious. The World Bank's biennial Global Economic Prospects (GEP) report says that the last 50 years have seen four stages of debt growth.

The first phase lasted from 1970-1989, the second phase 1990-2001 and the third phase from 2002-2009. The fourth phase, which began in 2010, saw an increase in debt.

The report states that the earlier stages of debt consolidation did not last that long and ended with the end of the financial crisis.

The reduction in interest rates is just a precaution before the financial crisis. World Bank Prospects Group director Ayhan Kosse said the high level of debt has raised a number of serious questions against the economy.

Global debt increased to 230 percent of GDP in 2018. Which was a record surface. Debt from developing countries also increased to 170 percent of GDP. The report says global economic growth is projected to be 2.5 percent in 2020. That's up from 2.4 percent last year.