On Monday, the World Bank warned that between the fallout from the Covid-19 pandemic, the ongoing conflict in Ukraine, the the ongoing financial crisis in the US and EU,, average global economic growth  could fall to a three-decade low of 2.2% per year through 2030.

According to its new report, the bank expects the global economy will expand by just 1.7% this year, due mostly to all of these factors.

World Bank chief economist Indermit Gill, said, “A lost decade could be in the making for the global economy. The ongoing decline in potential growth has serious implications for the world’s ability to tackle the expanding array of challenges unique to our times – stubborn poverty, diverging incomes, and climate change.”

World Bank analysts have warned that if there is a global financial crisis or a recession, things could get substantially worse, with much harsher declines in potential growth.

Ayhan Kose, the director of the World Bank’s forecasting group, said, “The slowdown we are describing… could be much sharper if another global financial crisis erupts, especially if that crisis is accompanied by a global recession.”

The institution also predicted that growth in developing economies will slow due to low investment, causing their average GDP growth to fall to 4% for the remainder of the 2020’s, down from 6% in the decade from 2000-2010, and 5% in the decade from 2011-2021.

The report noted that with investment growth from 2022-2024 likely to be at half the rate seen over the last two decades, productivity is likely to grow at the slowest pace seen since 2000. It noted global trade is growing at an even slower rate.

The report called on policymakers to tame inflation, secure financial sector stability, and reduce debt, noting that if that is accomplished, potential growth could go as high as 2.9%.