The World Bank is lowering its forecast for global economic growth this year, citing the war in Ukraine, inflation and the ongoing effects of the pandemic.
The World Bank now expects the global economy to grow by 3.2 percent in 2022, down from its previous estimate of 4.1 percent, President David Malpass said Monday. The World Bank estimated that the global economy grew by 5.7 percent last year.
The projection was updated before policymakers from around the world head to Washington this week for the World Bank and International Monetary Fund’s spring meetings.
“We are kicking off this spring meeting with a serious overlapping crisis,” Mr Malpass said during a briefing with reporters. “There is Covid, inflation and the Russian invasion of Ukraine.”
Mr Malpass said these forces were expected to push up global poverty rates as the world coped with sudden rises in the prices of energy, fertilizer and food. Rising interest rates are expected to slow growth and increase inequality, he said.
The World Bank is forecasting a sharp contraction in the economies of Russia and Ukraine, and Mr Malpass said nearby countries in Europe and Central Asia would feel the effects. Consumers in advanced economies are expected to cut spending this year as gasoline prices rise.
The IMF will release its World Economic Outlook on Tuesday.
