'Continuous development is necessary for employment, prosperity and peace', World Bank President Ajay Banga said in WEF
Davos: Banga said without development, you will not have employment, you will not have prosperity, and it often happens that without development, you will not have peace. So I think growth is at the core of our challenges in both the near and medium term.
Ajay Banga, President of the World Bank, spoke at the World Economic Forum. He underlined how crucial economic development is to determining the state of the world today. Banga emphasised that to foster wealth, create jobs, and uphold peace, persistent development is required.
During his keynote address at the WEF 24 session, Banga said, "The reality is that we are heading into the first half of the decade having the lowest growth rates in 30 years. Without growth, you will not have jobs, You will not have prosperity, and it is often the case that without development, you will not have peace. So I think development is at the core of our challenges in both the near and medium term."
During his address, Banga highlighted the multifaceted challenges facing the global economy in the near and medium term. He described rising debt in emerging economies as a major concern, saying it includes both foreign and domestic debt.
Banga said, "Debt is a big cause of concern in an emerging economy. The cause for concern is not just foreign debt; but also domestic debt, which is taken at low-interest rates." "There are situational geopolitical challenges, there are trade tensions and I think one should not discount. If China's economy slows down further, it will impact our global economic conditions," he said. He acknowledged that these concerns remain despite positive developments, although the world economy has performed better than expected over the past year.
