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Container ship in the port of Hamburg: World Bank demands decisive action
Photo: Markus Scholz / dpa
Around the globe, economic output fell massively in the past year - according to the World Bank by 4.3 percent.
This year, however, the institution believes the world economy will recover significantly.
Economic output is expected to grow by four percent, according to the forecast.
The prerequisite for this, however, is that the first vaccinations against Covid-19 take place nationwide in the course of the year, according to the World Bank.
The recovery is likely to be subdued unless policymakers act decisively to tame the pandemic and implement investment-friendly reforms.
According to the World Bank, the corona crisis has plunged millions of people into poverty.
That could depress the economy and incomes for a longer period of time.
The spread of the virus must be slowed down, which could be achieved by the rapid and widespread provision of vaccines.
"In order to overcome the effects of the pandemic and counter the headwinds in investments, the framework conditions for companies must be improved, the flexibility of labor and product markets must be increased and transparency and governance strengthened," said World Bank chief David Malpass.
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fdi / Reuters