Latest news with #DevelopmentEconomics
Gulf Business
a day ago
- Business
- Gulf Business
World Bank warns global growth to slow to lowest pace since 2008 amid trade tensions
Image: Getty Images/ For illustrative purposes Heightened trade tensions and persistent policy uncertainty are set to drag global growth down in 2025 to its weakest level since 2008, excluding outright global recessions, the World Bank said in its latest Global Economic Prospects Growth forecasts have been downgraded in nearly 70 per cent of economies across all regions and income groups, with global output now expected to expand by just 2.3 per cent in 2025 — nearly half a percentage point lower than projected at the start of the year. While the report does not forecast a global recession, it cautions that if projections for 2025 and 2026 materialize, the average global growth for the first seven years of this decade will mark the slowest start to any decade since the 1960s. 'Outside of Asia, the developing world is becoming a development-free zone,' said Indermit Gill, chief economist and SVP for Development Economics at the World Bank. 'Growth in developing economies has ratcheted down for three decades—from 6 per cent annually in the 2000s to 5 per cent in the 2010s — to less than 4 per cent in the 2020s. That tracks the trajectory of growth in global trade… Investment growth has also slowed, but debt has climbed to record levels.' Growth to weaken in 60 per cent of emerging economies The World Bank expects growth to weaken in nearly 60 per cent of developing economies this year, reaching an average of 3.8 per cent in 2025, before slightly improving to 3.9 per cent in 2026–27. That is more than a full percentage point below the average growth recorded in the 2010s. Among low-income countries, growth is now projected at 5.3 per cent in 2025, down 0.4 percentage points from earlier forecasts. Global inflation remains elevated, with price pressures driven by tariffs and tight labour markets; the World Bank projects inflation to average 2.9 per cent in 2025, above pre-pandemic levels. The report warns that sluggish growth will hinder developing economies in their efforts to create jobs, reduce extreme poverty, and close per capita income gaps with advanced economies. Per capita income growth is expected to hit 2.9 per cent in 2025, down 1.1 percentage points compared to the 2000–2019 average. Assuming developing economies excluding China maintain a growth rate of 4 per cent — as forecast for 2027 — it could take about two decades to return to their pre-pandemic output trajectory. Still, the 'Emerging-market and developing economies reaped the rewards of trade integration but now find themselves on the frontlines of a global trade conflict,' said M Ayhan Kose, deputy chief economist and director of the Prospects Group. 'The smartest way to respond is to redouble efforts on integration with new partners, advance pro-growth reforms, and shore up fiscal resilience to weather the storm.' The report encourages developing economies to pursue regional trade agreements, diversify export markets, and liberalise investment policies to counter rising protectionism. It also stresses the importance of domestic revenue mobilisation, targeted fiscal spending for vulnerable populations, and stronger fiscal frameworks. To accelerate growth, countries must improve business environments, boost productive employment, and strengthen labour market linkages. Multilateral support, concessional financing, and emergency relief will be essential for the most vulnerable economies, particularly those affected by conflict. World Bank's regional outlooks (2025 projections) East Asia and Pacific : 4.5 per cent Europe and Central Asia : 2.4 per cent Latin America and Caribbean : 2.3 per cent Middle East and North Africa : 2.7 per cent South Asia : 5.8 per cent Sub-Saharan Africa : 3.7 per cent
Yahoo
06-04-2025
- Business
- Yahoo
Plastic bag loophole means billions still being used despite 10p levy
Nearly a billion plastic bags are still being used in the UK each year because of an online delivery loophole, according to a new analysis. Although the plastic bag charge has been hugely successful since its introduction in 2015, the levy has not been applied to the booming industry of online purchases. When the charge first came into effect in England a decade ago, it was set at 5p, before being increased to 10p in 2021. But while it led to high-street plastic bag use falling by 98 per cent over the last ten years, the number being delivered to people's doorsteps remains on the rise. Analysis by Development Economics, commissioned by sustainable packaging business DS Smith, found that online fashion retailers delivered 941 million plastic bags to UK shoppers in 2024. As consumers continue to migrate online, this figure is expected to increase, hitting 1.3 billion a year by 2030. The UK is now the largest individual market for e-commerce plastic delivery bags in Europe and is estimated to have used 150 million more than second-placed Germany last year. The new analysis comes despite the research finding that half of British shoppers feel guilty about the amount of plastic their orders arrive in. Two-thirds of Brits want plastic bags to be phased out where replacements are available, and three in five say they prefer to receive their shopping wrapped in cardboard or paper. But some online fashion brands have already made the switch. Zalando, a major European online retailer for fashion and lifestyle, has been using paper shipping bags made from recycled content and FSC-certified virgin fibres instead of plastic bags since 2020. Stefano Rossi, of DS Smith, said other online fashion retailers should follow suit. She said: 'While online shopping has grown, e-commerce retailers lag high-street stores when it comes to replacing plastic bags. 'Brands like Zalando have proved change is possible, but there is a blocker; there simply aren't enough paper alternatives available and our industry needs to step up to provide them. 'It will be tempting for businesses to fixate on price, but sticking with plastic comes at a cost – consumers don't want it, and brands risk their reputation by ignoring that. 'We think legislation can and should be more demanding of us all – phasing out certain plastics to help create a level playing field that encourages innovation, investment, and generates healthy competition to replace plastic.' Only 9 per cent of the fashion e-commerce bags delivered across the UK are currently being reused or recycled, with 857 million bags ending up in landfill or incineration last year, according to the research. The analysis found that growth in e-commerce and slow progress on increasing recycling rates mean that by 2030, more than 1 billion plastic bags annually will end up being burned or in landfill. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Telegraph
06-04-2025
- Business
- Telegraph
Nearly a billion plastic bags still used in UK annually because of loophole
Nearly a billion plastic bags are still being used in the UK each year because of an online delivery loophole, according to a new analysis. Although the plastic bag charge has been hugely successful since its introduction in 2015, the levy has not been applied to the booming industry of online purchases. When the charge first came into effect in England a decade ago, it was set at 5p, before being increased to 10p in 2021. But while it led to high-street plastic bag use falling by 98 per cent over the last ten years, the number being delivered to people's doorsteps remains on the rise. Analysis by Development Economics, commissioned by sustainable packaging business DS Smith, found that online fashion retailers delivered 941 million plastic bags to UK shoppers in 2024. As consumers continue to migrate online, this figure is expected to increase, hitting 1.3 billion a year by 2030. The UK is now the largest individual market for e-commerce plastic delivery bags in Europe and is estimated to have used 150 million more than second-placed Germany last year. The new analysis comes despite the research finding half of British shoppers feel guilty about the amount of plastic their orders arrive in. Two-thirds of Brits want plastic bags to be phased out where replacements are available, and three in five say they prefer to receive their shopping wrapped in cardboard or paper. 'Change is possible' But some online fashion brands have already made the switch. Zalando, a major European online retailer for fashion and lifestyle, has been using paper shipping bags made from recycled content and FSC-certified virgin fibres instead of plastic bags since 2020. Stefano Rossi, of DS Smith, said other online fashion retailers should follow suit. She said: 'While online shopping has grown, e-commerce retailers lag high-street stores when it comes to replacing plastic bags. 'Brands like Zalando have proved change is possible, but there is a blocker; there simply aren't enough paper alternatives available and our industry needs to step up to provide them. 'It will be tempting for businesses to fixate on price, but sticking with plastic comes at a cost – consumers don't want it, and brands risk their reputation by ignoring that. 'We think legislation can and should be more demanding of us all – phasing out certain plastics to help create a level playing field that encourages innovation, investment, and generates healthy competition to replace plastic.' Only 9 per cent of the fashion e-commerce bags delivered across the UK are currently being reused or recycled, with 857 million bags ending up in landfill or incineration last year, according to the research. The analysis found that growth in e-commerce and slow progress on increasing recycling rates will mean that by 2030, more than 1 billion plastic bags will end up in landfill or being burned annually.
Yahoo
02-04-2025
- Business
- Yahoo
The plastic bag ‘loophole' that means billions are still used in UK
People in the UK have been paying extra for plastic bags in supermarkets for a decade now - but a 'loophole' in the law means billions of bags are still being used. The plastic bag levy first came into force for large retailers in October 2015, and now applies to all retailers in Britain. But there is a huge gap between the progress made in bricks-and-mortar retail and the approach taken by delivery services, according to research by Development Economics, commissioned by sustainable packaging business DS Smith. While UK law means that in-store purchases incur the plastic bag levy, this does not apply to purchases made online. As online shopping has grown in popularity, the number of plastic bags used to ship shopping has too - with online fashion retailers alone sending out almost a billion plastic bags to UK shoppers last year. By 2030, 1,3 billion plastic delivery bags will be used every year, adding up to 6.9 billion bags over the next five years, the research found. Across all types of retail e-commerce, the UK uses more plastic bags per year than any other country in Europe. The plastic bags cannot be recycled in most UK regions. Instead shoppers have to take them to dedicated recycling points. As a result, recycling rates for the plastic bags used to ship fashion ecommerce items are as low as 9%. Stefano Rossi of DS Smith said: "We think legislation can and should be more demanding of us all – phasing out certain plastics to help create a level playing field that encourages innovation, investment, and generates healthy competition to replace plastic." Some high-profile businesses such as Zalando and Amazon have switched to plastic-free packaging, but many retailers are reluctant to do so due to higher costs or a lack of alternatives. David Fischer, director of logistics, sustainability and packaging at Zalando said: 'After introducing our first paper bags, customer satisfaction with our new packaging surged by 16% year over year. 'Finding the perfect solution is a complex task, especially in a landscape where more sustainable alternatives are not yet fully scalable or may not meet the minimum requirements both in terms of sustainability and operational feasibility.' At present, the rules look set to stay the same, although government initiatives aim to make it easier for households to recycle. The government's Simpler Recycling scheme aims to encourage businesses (from 31 March 2025) to separate and recycle waste into glass, metal, plastic, paper and food waste, with food waste bins mandatory from 2026. Simpler Recycling also aims to ensure there is no 'postcode lottery' around recycling so that different areas have the same rules around what is recycled.
