The World Bank says the global economy's speed limit, which is the maximum long-term rate at which it can grow without sparking inflation, is set to slump to a three-decade low by 2030.
The multinational lender says an ambitious policy push is needed to boost productivity and the labour supply, ramp up investment and trade, and harness the potential of the services sector.
According to the bank's new report, nearly all the economic forces that powered progress over the last three decades are fading.
The report says between 2022 and 2030, the average global potential GDP growth is expected to decline to 2.2 per cent a year.
It further states that for developing economies, the decline will be equally steep, from 6 per cent a year between 2000 and 2010, to 4 per cent a year over the remainder of this decade.
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