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Growth is biggest challenge for emerging economies - World Bank chief economist

Published 10/11/2021, 02:07 PM
Updated 10/11/2021, 02:11 PM
© Reuters. FILE PHOTO: A participant stands near a logo of World Bank at the International Monetary Fund - World Bank Annual Meeting 2018 in Nusa Dua, Bali, Indonesia, October 12, 2018. REUTERS/Johannes P. Christo/File Photo

LONDON (Reuters) - Lack of growth is the biggest economic challenge facing developing economies, the World Bank's chief economist said on Monday.

Economic growth was essential for poverty reduction, as well as creating government revenues to use for fiscal space, social safety nets and the provision of public goods, said Carmen Reinhart, the World Bank's chief economist.

"We had a challenge in many emerging markets and developing countries even before the pandemic, growth started to slow down around 2015," she said.

© Reuters. FILE PHOTO: A participant stands near a logo of World Bank at the International Monetary Fund - World Bank Annual Meeting 2018 in Nusa Dua, Bali, Indonesia, October 12, 2018. REUTERS/Johannes P. Christo/File Photo

"With growth comes jobs, with growth and jobs comes recovery."

The World Bank hopes to raise $100 billion in donations for the International Development Association fund for poorer countries to address "tragic reversals in development" caused by the COVID-19 pandemic, its president David Malpass said on Monday, adding that growth disparities between advanced economies and developing countries were worsening.

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