World Bank President David Malpass has revealed that it will take two to three years for global economies to return to pre-pandemic levels.
This is likely to occur as many developing nations slowly climb out of the slump induced by the novel coronavirus (COVID-19), and with the help of vaccines.
During the Wall Street Journal’s CEO Council Summit, held on Tuesday, Malpass added that the Chinese economy is in recovery, and that this recovery will have a number of benefits for its neighbours. In Southeast Asia, there has been more of a recovery underway that extends to Japan.
For other developing countries, advanced economies are the most important variable because that is often where their markets are, he added.
He added that the coronavirus pandemic has caused the global economy to collapse during 2020, throwing nearly 100 million people into extreme poverty in many poor countries.
Malpass noted that the recovery processes in developed economies are going somewhat faster than expected. However, the situation is complicated in a number of developing economies, especially due to the decrease in the flow of tourists.
“The way to save livelihoods and human lives is to reach people with vaccines as soon as they are available,” he said, “Doing this on an unprecedented global scale is an enormous challenge, especially for developing countries.”
In October, the World Bank approved a $12bn grant to help developing countries purchase and distribute vaccines, tests, and treatments. The International Finance Corporation (IFC), the World Bank’s private sector development arm, is providing $4bn to manufacturers of vaccines and related supplies in low- and middle-income countries.