The global economy's "speed limit" is set to slump to a three-decade low of 2.2 percent per year by 2030, bringing the world's economy into a "lost decade" unless bold policies are adopted to reverse this decline, the World Bank warned on Monday.

Nearly all the economic forces that powered progress and prosperity over the last three decades are fading, a new report by the World Bank indicated. Consequently, between 2022 and 2030, average global potential GDP growth is expected to decline to 2.2 percent a year, roughly a third of what the world experienced in the years 2000 to 2010. For developing economies, in particular, the decline will be equally steep: from 6 percent a year between 2000 and 2010 to 4 percent a year over the remainder of this decade.

In the aftermath of the COVID-19 pandemic and Ukraine crisis, existing challenges including stubborn poverty, diverging incomes, and climate change become even more difficult to tackle, said the World Bank.

The report's lead author also expressed that the current systemic banking crises do greater immediate harm than recessions.

"A lost decade could be in the making for the global economy," said World Bank chief economist Indermit Gill, though he believes policies that incentivize work, increase productivity, and accelerate investment could raise the speed limit.

Specific policy actions at the national level such as ramping up investment, cutting trade costs, capitalizing on services and increasing labor force participation could make an important difference in promoting long-term growth prospects, with potential GDP growth up 0.7 percentage point to 2.9 percent, the report said.