The United States, China, and India are now driving faster global growth, according to World Bank President David Malpass, who also expressed concern about that inequality as a result of the COVID-19 pandemic.
He added that there is also a question about inequity in terms of vaccines and median income, which isn’t rising as quickly in certain countries.
“However, there is a sense that there is inequity. Inequality in terms of vaccines, as well as in terms of median income, is not increasing quickly in some countries and may even be decreasing. There’s the interest rate gap, in which developing countries pay far higher interest rates, which haven’t fallen in line with global interest rates,” he said.
“The good news is that there is faster global growth, led mainly by the United States, China, and India, which are all experiencing significant rebounds,” Mr. Malpass told reporters at the start of the International Monetary Fund (IMF) and World Bank Spring Meetings.
Vaccines, climate change, debt, and recovery are among the topics discussed at the annual spring conference, which is being held virtually.
According to Mr. Malpass, there is a disparity in the bankruptcy process, which is not open to sovereign nations, leaving developing countries with no way out of their crippling debt burdens.
“There is still disparity in terms of credit access, with much of the stimulus going to the upper end and those who don’t have pristine credit scores, for example, or small businesses, new entrants, women who want to start a company, having great difficulty getting credit,” he said.
According to Mr. Malpass, the World Bank and the IMF are collaborating together to ensure that the G20’s Common Framework for dealing with unsustainable debt situations is implemented successfully.
According to him, there was a call for the private sector to have comparable debt treatment.
In response to a query, Mr. Malpass stated that the vaccine rollout is taking too long, especially in Europe.
“It’s disheartening. Every day, we hear about the different problems that countries face in the press. As excesses become available in other nations, I fervently believe, wish for, and hope for a faster rollout. “We should also expect regulatory authorities to work efficiently toward approvals, allowing more vaccines to be licenced,” he said.
Being vaccinated, he said, is a vital part of people’s protection and global recovery.
Mr. Malpass continued, “I share Germany’s sentiment that there might be a softening of their GDP (Gross Domestic Product) growth outlook due to the vaccine crisis, and it redoubles everyone’s urgency and efforts to make more vaccines available worldwide.”