It seems that the issue of haze is spreading everywhere, but it hasn't caused as much alarm as the World Bank recently discussing the overall state of the global economy in 2019, highlighting an economic slowdown that can be likened to a period where the economy is shrouded in thick fog.

         The key points from the World Bank report indicate that international trade and investment are slowing down, with high levels of trade tensions. Even emerging markets have been under continuous financial pressure since 2018, and exports are recovering slowly, with further slowdowns expected.

Global Economic Growth and Debt Burden

         Many banks worldwide have adopted accommodative interest rate policies to support economic recovery. However, several countries still face rising household debt levels, increasing the risk of global interest rate hikes, along with investor confidence and exchange rate volatility. Nevertheless, many countries have access to new funding sources, allowing for gradual development.

         Regarding public debt, low-income countries have a debt-to-GDP ratio of 30-50% over the past four years, resulting in these countries being in a debt repayment phase. This situation is expected to continue if borrowing costs increase as predicted by the World Bank.

Growth of Informal Employment is a Concerning New Trend

         World Bank states that managing the emergence of new types of businesses and informal employment is a challenge for returning to economic strength. It has been found that informal employment and new businesses are prevalent in developing countries, with some countries having over 90% of employment in the informal sector. In the informal production sector, it accounts for as much as 62% of GDP. Meanwhile, workers in the formal economy earn an average of 19% more than those in the informal sector. - เทอร์ร่า บีเคเค

 

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