Tag: world bank

  • A child born in Romania today will achieve only half of productive potential

    A child born in Romania today will achieve only half of productive potential

    A child born in Romania today will achieve only half of the productive potential of a fully educated adult in good health, says the latest update of the World Bank’s Human Capital Index (HCI), which measures pre-pandemic human capital outcomes around the world. 

    The analysis shows that a child born in Romania today will be achieve 58 percent of a fully educated adult in optimal health. This is lower than the productivity potential of 60 percent 10 years ago.

    The country is now lower than the average for the Europe & Central Asia region including high-income countries.  

    Romania’s HCI value reflects the need for urgent improvements in health and education outcomes.

    Today, a child in Romania can expect to complete 11.8 years of pre-primary, primary and secondary school by age 18, compared with 12.6 years in 2010. By comparison, a child in France can expect to complete 13.8 years.

    When years of schooling are adjusted for the quality of learning, the World Bank estimates that a child in Romania only benefits from 8.4 years of schooling, a learning gap of 3.4 years.

    Furthermore, students in Romania score 442 for learning outcomes on a scale where 625 represents advanced attainment and 300 represents minimum attainment.

    In terms of health, the percentage of 15-year-olds that will survive to age 60 stands at only 88 percent, compared to 93 percent in France and 95 percent in Sweden.

    The World Bank Group’s 2020 Human Capital Index shows that pre-pandemic, most countries have made steady progress in developing human capital in children, with the biggest strides made in low-income countries.

    Despite this progress, and even before the effects of the pandemic, a child born in a typical country could expect to achieve just 56 percent of her potential human capital, relative to a benchmark of complete education and full health.

    The HCI is made up of this indicators

    • the probability of survival to age 5;
    • a child’s expected years of schooling;
    • harmonized test scores;
    • learning-adjusted years of school;
    • adult survival rate and healthy growth – the proportion of children who are not stunted (data on stunting are not available for Romania).

    Scores are compiled for 174 countries covering 98 percent of the world’s population up to March 2020, providing a pre-pandemic baseline on the health and education of children.

    The Human Capital Index (HCI), first launched in 2018, measures the level of knowledge and skills that a child born today can expect to acquire by the age 18 based on the risks associated with poor education and health in a specific country.

  • World Bank sees the deepest recession since the Second World War

    World Bank sees the deepest recession since the Second World War

    According to World Bank forecasts, the global economy will shrink by 5.2% this year. 

    That would represent the deepest recession since the Second World War, with the largest fraction of economies experiencing declines in per capita output since 1870, the World Bank says in its June 2020 Global Economic Prospects.

    Economic activity among advanced economies is anticipated to shrink 7% in 2020 as domestic demand and supply, trade, and finance have been severely disrupted.

    Emerging market and developing economies (EMDEs) are expected to shrink by 2.5% this year, their first contraction as a group in at least sixty years.

    Per capita incomes are expected to decline by 3.6%, which will tip millions of people into extreme poverty this year.

    In CEE, Serbia has the slowest GDP decline this year and Croatia the biggest growth in 2021

    For the Bulgarian economy, the forecast is a decline of 6.2% for 2020 and a recovery next year to a growth of 4.3%. 

    Croatia will suffer a GDP decline of -9.3% in 2020 and a recovery of 5.4% in 2021.

    Hungarian economy will have a decline of -5.0% this year and a rise of 4.5% next year.

    Poland is in a better situation with an economic decline of -4.2% in 2020, but a slower recovery, of just 2.8% in 2021.

    For Romania, GDP will decrease by -5.7% this year and a rise of 5.4% in 2021.

    Serbian GDP will decline by -2.5% in 2020 and a recovery of 4.0% in 2021.