World Bank warns global economy could be heading for a ‘lost decade’ of growth after the coronavirus pandemic

World Bank warns global economy could be heading for a ‘lost decade’ of growth after the coronavirus pandemic

Economies around the world, such as Mexico's, have been hampered by social distancing due to COVID-19

Rebecca Blackwell/ASSOCIATED PRESS

The COVID-19 pandemic is set to hit potential global growth over the next ten years, and could even cause a 'lost decade' if the recovery is mismanaged, the World Bank has said.

The World Bank said lower levels of investment, slower improvements in education, and lower female labor force participation would limit economies.

The global economy is expected to grow 4% in 2021 after shrinking 4.3% in 2020, but China is set to roar ahead with 7.9% growth this year.

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The coronavirus pandemic will cause "lasting damage" to the world economy and could even lead to a "lost decade" of growth, according to a gloomy report from the World Bank.

Although the global economy is set to recover sharply this year, it will still be around $4.7 trillion smaller than pre-pandemic projections, the international organization said.

Global GDP contracted by 4.3% last year, as COVID-19 led governments to all but shut down economies, according to the World Bank's Global Economic Prospects report.

It is expected to grow 4% next year, as coronavirus vaccines aid a return to normal life. Nonetheless, the global