The global economic recovery is facing significant headwinds amid new waves of COVID-19 infections, persistent labour market challenges, lingering supply-chain challenges and rising inflationary pressures.

The global recovery is set to decelerate amid diminished policy support, continued COVID-19 flare-ups, and lingering supply bottlenecks. In contrast to that in advanced economies, output in emerging market and developing economies will remain markedly below pre-pandemic trends over the forecast horizon.

Global economic growth has picked up in 2021 and has now surpassed its pre-pandemic level. The National Bank of Rwanda (NBR) has maintained an accommodative monetary stance and other measures to support the recovery, taking advantage of low inflation. The government’s continued fiscal expansion is also providing support to the economy.

To achieve quality growth over the medium-term, China will need to rebalance its economy across several dimensions, according to Rebalancing Act, From Recovery to High-Quality Growth, the latest China Economic Update released by the World Bank.

In August, the Asian Development Bank (ADB) announced an ambitious plan to buy high emissions coal-fired power plants in Southeast Asia and retire them within 15 years through an energy transition mechanism (ETM).

The African Continental Free Trade Area (AfCFTA) could reduce COVID-19-induced growth contraction, poverty and inequality trends and spur sustainable and inclusive growth on the continent if stronger support measures targeting women, young traders and small businesses are implemented, according to UNCTAD’s Economic Development in Africa Report 2

The Egyptian economy continues to show the resilience it has displayed throughout the COVID-19 pandemic, due to the macroeconomic and energy sector reforms it has implemented in recent years, along with measures taken to ease monetary conditions, provide selected sectoral support, and mobilize external financing.

South Asia has experienced significant progress in improving human and physical capital over the past few decades. Within the region, India has become a global economic powerhouse with enormous development potential ahead.

After several months of low COVID-19 case numbers, Malawi is facing a fourth wave. While an increasing share of the global population is protected by vaccines, only about 6.5 percent of the population is vaccinated in Malawi, increasing the country’s vulnerability to the virus.

The Kenya Economic Update (KEU) is a World Bank report series produced twice a year that assesses recent economic and social developments and prospects in Kenya, and places these in a longer-term and global context. Through special topics, the KEU also examines selected policy issues and medium-term development challenges in Kenya.