WB: Countries worldwide must focus on socio-economic reforms

Countries worldwide must focus on socio-economic reforms despite the worsening global instability and the escalation of conflict in the Middle East.

This was stated by Anna Bjerde, Managing Director of Operations at the World Bank (WB).

"Now we must also take into account the current events in the Middle East, which are causing disruptions due to fuel and fertilizer prices. This could slow growth, affect employment, increase inflation, and exacerbate the issue of food security," she emphasized at the China Development Forum, held in Beijing on March 22-23. "However, dealing with this uncertainty is only half the task. Countries need to continue investing in reforms to turn stability into opportunities."

As Bjerde clarified, over the next 10-15 years, the global labor market will grow by 1.2 billion people due to the younger generation, most of whom live in low- and middle-income countries. "This youth, with their energy and ideas, will shape the next century. However, according to current forecasts, [over the specified period] only about 400 million jobs will be created worldwide," she said.

The WB Managing Director pointed out that fiscal reforms do not imply austerity and should be seen as "preserving the potential to invest in people, in opportunities, and in ensuring resilience, even in an increasingly unstable global environment."

Bjerde reminded that, according to the bank's forecast, the global GDP growth rate in 2026 will be 2.5%, while for developing countries, it will be around 4%. "These figures are simply not enough to bring developing countries closer to the level of developed economies. They are not sufficient to create the number of jobs needed to meet demographic demands," she added.