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Can the global economy avoid a lost decade?

By Kaushik Basu

3 min read

Editor's Note

Kaushik Basu discusses the current "polycrisis" and the need for multilateral cooperation in his latest article for PS, warning of a potential "lost decade" for the global economy.

NEW YORK – The Spring Meetings of the World Bank and International Monetary Fund usually provide a platform for various organizations, policymakers, and commentators to reflect on the state of the global economy, offer assessments of the previous year’s developments, and forecast what lies ahead. This year’s meetings, which took place in Washington in April, were accompanied by grim predictions that underscored the growing likelihood of a prolonged global recession.

While many analysts previously assumed that the confluence of crises that the world has faced over the past three years – the COVID-19 pandemic, supply-chain disruptions, the war in Ukraine, and the resulting inflation crisis and financial turmoil – would have a significant but ultimately transitory effect on the global economy, new data suggest that the current economic upheaval will last longer than initially expected.

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