World Bank Group President David Malpass said on Monday (10th April 2023) that the lender has revised its 2023 global growth outlook slightly upward to 2% from a January forecast of 1.7%.* But the slowdown from stronger 2022 growth will increase debt distress for developing countries. * Malpass told a media briefing that the upward revision was due to an improved outlook for China's recovery from Covid-19 lockdowns, with growth now pegged at 5.1% this year compared to 4.3% in the bank's January Global Economic Prospects report. * Advanced economies, including the U.S., are also doing a bit better than the World Bank anticipated in January, Malpass said. * But the departing World Bank chief warned that turmoil in the banking sector and higher oil prices could again put downward pressure on growth prospects later this year. A bank asset maturity mismatch will take some time to work through and banks are likely to pull back credit. * Malpass said that technical meetings this week with Chinese officials can help "break the ice" on potential movement on badly needed debt relief for poor countries. * Malpass said China also would be able to score some political points at a fairly low cost for its lending institutions..Source : Business Standard
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