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Global economy dangerously close to a recession: World Bank
The global economy is “dangerously close” to a recession, as inflation remains elevated, interest rates rise, and growing debt burden hits the developing world, World Bank President David Malpass said.
“We’ve lowered our 2023 growth forecast from 3 per cent to 1.9 percent for the global growth, that’s dangerously close to a world recession,” Malpass said at a press conference during the IMF and World Bank annual meetings on Thursday.
“All of the problems that people have taken note of, the inflation problem, the interest rate rises, and the cutoff of capital flow to developing world hit the poor hard,” he said, highlighting the buildup of debt for developing countries.
“That’s a world recessions could happen under certain circumstances,” Malpass said.
In a study published in mid-September, the World Bank warned that as central banks across the world simultaneously hike interest rates in response to inflation, the world may be edging toward a global recession in 2023, with a growth forecast of only 0.5 per cent, reports Xinhua news agency.The World Bank chief noted at the press conference that world population growth is estimated at 1.1 per cent per year.
“So if you get much slower in terms of world growth, that means people are going backward,” Malpass said in response to a question from Xinhua.
Citing a recent World Bank report, Malpass said that the Covid-19 pandemic dealt the biggest setback to global poverty-reduction efforts since 1990, pushing about 70 million people into extreme poverty in 2020, and the war in Ukraine threatens to make matters worse.According to the Poverty and Shared Prosperity Report, global median income declined by 4 per cent in 2020, the first decline since its measurements of median income began in 1990.
“So if we have a world recession now, that would also depress median income, meaning that the people in the lower half of the income scale are going down,” Malpass said.The World Bank chief also noted that he has been concerned about the concentration of capital in the world in the top end of the advanced economies.
“So that’s, I think, one of the issues that the world has to deal with to allow capital to flow to new businesses and to developing countries, that would take a change in the direction of fiscal and monetary policies in the advanced economies,” said Malpass.
The world is facing very challenging environment from the advanced economies, and that has serious implications, dangers for the developing countries, he said.
“My deep concern is that these conditions and trends might persist into 2023 and 2024.”
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Environmental laws will be enforced equally against everyone
Prime Minister Dr. Harini Amarasuriya stated that the Government was deeply saddened by the unfortunate death of the Tusker Kavanthissa, a national treasure who sustained severe injuries from gunshot wounds. She emphasised that environmental laws would be strictly enforced against those responsible for environmental crimes, without discrimination or favouritism.
The Prime Minister made these remarks while addressing the Presidential Environmental Awards 2026, organised for the 11th time by the Central Environmental Authority under the Ministry of Environment, at the Bandaranaike Memorial International Conference Hall (BMICH) in Colombo on Monday (19 October).
A total of 195 awards, comprising Gold, Silver, Bronze and Merit Awards, were presented to institutions recognised for their sustainable management of natural resources. The Prime Minister participated in presenting the Gold Awards.
Addressing the occasion, the Prime Minister stated:
“A country’s prosperity is measured not only by its economic indicators. Clean air, safe drinking water and a healthy ecosystem are equally essential to ensuring a better quality of life for its people.
The Clean Sri Lanka programme, launched with this objective, is not merely about cleaning roads. It is a national transformation aimed at reducing waste, ensuring proper waste management and changing the way we think about and treating the environment.
We cannot allow tragedies such as the one that befell Tusker Kavanthissa to happen again. Environmental laws must not be influenced by a person’s position, wealth or connections. The law will be enforced equally against everyone. Everything from the issuance of licences to the approval of projects must be carried out on the basis of scientific evidence and with complete transparency.
Development achieved at the expense of environmental destruction can never be considered sustainable development. Wildlife officers and veterinary teams made significant efforts to save the Tusker Kavanthissa. However, the Tusker could not be saved due to the severity of its injuries and the resulting infections.
The Government is deeply saddened by this loss. In order to prevent similar incidents in the future, we will further strengthen veterinary care for wildlife and veterinary education. The Government has already taken a number of practical measures to address the long-standing human-elephant conflict.
Accordingly, 113 forest areas have been designated as reserves, bringing 71,900 hectares (approximately 180,000 acres) under protection. In addition, three elephant corridors are being established to facilitate the free movement of elephants, alongside a dedicated reserve for elephant management.
In order to strengthen the field operations of the Department of Wildlife Conservation, 100 pickup vehicles, 185 motorcycles and nine tractors have been provided. Furthermore, 3,500 elephant fence assistants and 5,000 members of the Civil Security Department have been deployed to maintain elephant fences.
Steps have also been taken to amend the National Environmental Act after 26 years. More than 1,600 new officers are being recruited to the Ministry of Environment.
Environmental conservation must not be treated as a temporary project. It must become an essential component of government policy and the daily lives of every citizen. It is vital to support small and medium-sized enterprises in adopting green technologies, promoting practical environmental skills through school and university education, and fostering environmental responsibility through religious institutions. We seek the support and cooperation of the entire public to ensure that we leave behind a safe, beautiful and clean country for future generations.
The event was attended by Minister of Environment Dhammika Patabendi; Minister of Industry and Entrepreneurship Development Sunil Handunnetti; Deputy Minister of Environment Anton Jayakody; Secretary to the Ministry of Environment K. R. Uduwawala; Chairman of the Central Environmental Authority, Professor Tilak Hewawasam; and a large gathering of government officials, foreign representatives and award recipients.
Prime Minister’s Media Division
Latest News
President pays last respects to Most Venerable Kappetiyagoda Siri Wimala Thera
President Anura Kumara Dissanayake today (20) paid his last respects to the remains of Most Venerable Kappetiyagoda Siri Wimala Thera, Anunayake of the Sri Lanka Ramanna Maha Nikaya and Chief Incumbent of the Rajopawanaramaya Temple in Gatambe, Kandy, who passed away.
The President visited the Rajopawanaramaya Temple in Gatambe, Kandy, where the remains of the Thera are lying, and paid his last respects. He subsequently expressed his deepest condolences to the Maha Sangha and the temple’s Dayaka Sabha, who are mourning the passing of the Thera.
Central Province Governor and Consultant Physician Dr Harsha Suranga Fernando, Kandy District Secretary Indika Udawatta and several others were present.
President’s Media Division (PMD)
News
Ranawaka accuses govt. of using JVP cadres and police to suppress political opponents
… reminds AKD led over 560 protests during Yahapalanaya
Former Yahapalana Minister and United Republican Front (URF) leader Patali Champika Ranawaka yesterday (19) alleged that the JVP, which carried out over 560 protests during the 2015-2019 period, was now bent on preventing the Opposition from exercising its democratic right to protest.
Recalling the declaration made by the JVP at the height of the violent protest campaign in July 2022 that it would set the Parliament ablaze, the former parliamentarian lashed out at the JVP-led administration for using the police excessively to curb political opposition. Ranawaka said this while addressing the media at the former President Ranil Wickremesinghe’s Flower Road Office .
Commenting on the protest campaign launched by the Maha Sangha, demanding presidential pardon for General Secretary of the Bodu Bala Sena (BBS) Ven. Galagotaatte Gnanasara, the ex-Colombo District lawmaker alleged that President Anura Kumara Dissanayake used a combination of police, investigative units and JVP cadres to break up the monks’ protest. The government went to the extent of compelling the JVP/NPP-run Colombo Municipal Council (CMC) to deprive the peaceful protesters of basic toilet facilities, he alleged.
The government’s actions proved that only those with prior approval from JVP Pelawatte headquarters could launch protests in Colombo, its suburbs or in the provinces. The police have become a political tool in the hands of the JVP, the ex-Minister said. (SF)
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