Growth challenges

Global prospects have worsened in recent years

One of the biggest risks for developing economies in their development journey is getting stuck at the middle-income level, or what economists call the middle-income trap. A new study by the World Bank — released last week — highlighted the challenge. It marked 108 nations, including major economies like China, India, South Africa, Brazil, and Vietnam, with per capita income ranging between $1,136 and $13,845 as middle-income countries striving to attain high-income status within the next two or three decades. However, World Bank economists have cautioned these countries, which comprise 40 per cent of global economic activity,