World Bank yesterday slashed the global economic growth forecast for 2022 due to the Russia-Ukraine conflict, supply chain disruption and other factors. It added that many countries are likely to face recession.
In its Global Economic Prospects report, the bank said, the world economy is expected to experience its sharpest deceleration following an initial recovery from global recession in more than 80 years.
It has been predicted that the world economy will expand 2.9% this year. It will be down from last year’s 5.7% global growth and from the 4.1% it had forecast for this year back in January.
World Bank’s president David Malpass said, the war in Ukraine, lockdowns in China, supply-chain disruptions, and the risk of stagflation are hammering growth. For many countries, recession will be hard to avoid, he added.
However, the World Bank chief warned against trying to resolve the inflation spike with price controls or export restrictions. Mr. David Malpass said it is urgent to encourage production and avoid trade restrictions.
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