Global growth is expected to decelerate to 3.2% this year, the World Bank said on Monday, citing the impacts of the conflict in Ukraine, inflation, and the lingering effects of the coronavirus pandemic. The bank had previously projected 4.1% global economic expansion in 2022.
World Bank President David Malpass told reporters on a conference call that the institution is proposing a new, 15-month crisis financing target of $170 billion, with a goal to commit about $50 billion of that financing over the next three months. “We’re preparing for a continued crisis response, given the multiple crises,” he said as quoted by Reuters.
The plan follows the World Bank’s $160 billion Covid-19 financing program, Malpass explained, of which $157 billion was committed through June 2021.
According to Malpass, the biggest component of the world growth forecast reduction was a 4.1% contraction in Europe and Central Asia – comprising Ukraine, Russia, and the surrounding countries. He said forecasts were also being cut for advanced and many developing economies due to spikes in food and energy prices caused by the Ukraine-related supply disruptions.
Malpass noted that the financing will in part support countries that have taken in refugees from Ukraine and help address problems in countries affected by food shortages.
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