Anna Bjerde calls on countries to push ahead with reforms amid global instability

Countries should focus on socio-economic reforms despite rising global instability and escalating tensions in the Middle East, Anna Bjerde, managing director for operations at the World Bank, said Friday at the China Development Forum in Beijing.

According to Report, she said recent events in the region are already driving up fuel and fertilizer prices, which could slow economic growth, affect employment, push up inflation, and worsen food security.

"But coping with this uncertainty is only half the task. Countries need to continue investing in reforms," Bjerde said.

She noted that over the next 10 to 15 years, the global labor force is expected to grow by 1.2 billion people, while only about 400 million new jobs are projected to be created.

Bjerde also stressed that budget reforms should not mean austerity. They should aim to preserve room for investment in development and economic resilience.

According to World Bank forecasts, global GDP is expected to grow about 2.5% in 2026, with developing countries seeing roughly 4% growth - not enough to close the gap with advanced economies.

She highlighted the need for investment in energy, transportation, digital infrastructure, education, and healthcare, as well as for creating a predictable and business-friendly environment.

Bjerde also emphasized the importance of attracting private capital, noting that the scale of the job creation challenge far exceeds what governments alone can fund.