The World Bank has said in its annual review that 2022 has been a year of uncertainty with educational losses, global inflation, supply chain disruptions and other global challenges that have been reminding the remaining effects of the corona epidemic.
The increase in the intensity of natural hazards has continued to highlight the social and economic impacts of climate change and the effects of climate change worsened in the post-pandemic world in 2022, the review stated.
It further added that severe floods in Pakistan took hundreds of lives and displaced millions of people while droughts in China and Africa affected millions of people, Europe also experienced severe heat waves and witnessed the worst drought in 500 years.
During 2022 the world faced a global growth crisis in an unstable and uneven state of economic recovery, slow growth played an important role in reversing progress on global anti-poverty and increasing global debt. Global vaccination efforts have helped countries cope with the pandemic and bring millions of children back to educational institutions but the long-term effects of losses to the learning process could last for years.
Food prices and food insecurity increased significantly throughout the year, exacerbated by climate change and Russia’s invasion of Ukraine have been factors that led to an increase in food, fuel and fertilizer prices. The global economy has been the slowest since the recession in the 1970s with consumer confidence declining significantly compared to the previous global recession.
By the end of 2022, about 685 million people have been expected to fall into extreme poverty making 2022 the second worst year in terms of poverty reduction in the last two decades (since 2020).
In addition to the long-term effects of the pandemic, rising food and energy prices, climate change shocks and conflicts such as Russia-Ukraine hindered rapid recovery. It has been estimated that seven percent of the world’s population (about 574 million people) will face extreme poverty in 2030 which is far below the global target of recognizing this level to three percent in 2030.
Last year, the debt crisis of developing countries intensified while the level of overall debt of developing countries increased during the last decade and about 60 percent of the world’s poorest countries have been facing debt-related problems.
The World Bank Group expanded its cooperation to help countries meet climate and development needs together and provided $31.7 billion in climate finance, the highest in its annual history.