World Bank slashes growth forecast for global economy
The World Bank slashed its growth forecast for the global economy for the second time this year as the Ukraine war, now in its fourth month, exacerbates the slowdown from the Covid-19 pandemic.
The lender lowered its growth estimate for 2022 to 2.9 per cent, from the 3.2 per cent projection it issued in April, as the escalating geopolitical crisis threatens to lead to a “protracted period of feeble growth and elevated inflation.”
The new forecast is significantly lower than the 4.1 per cent estimate made in January and a deceleration from the 5.7 per cent expansion recorded in 2021.
Growth is now expected to hover around a similar pace between 2023 and 2024, as Ukraine war disrupts economic activity, investment and trade, denting pent-up demand as fiscal and monetary policy accommodation is withdrawn.
