World Bank slashes its growth estimate for the global economy to 2.9 percent, 1.2 percentage points below the January forecast, due to the Russian offensive in Ukraine which has caused a severe downturn
The Bank also slashed its 2022 global growth forecast to 2.9 percent, significantly lower than January’s 4.1 percent.
The conflict in Ukraine had magnified the slowdown in the global economy, which was now entering what could become "a protracted period of feeble growth and elevated inflation," the World Bank said on Tuesday in its Global Economic Prospects report, warning that the outlook could still grow worse. Malpass said global growth was being hammered by the conflict, fresh Covid lockdowns in China, supply-chain disruptions and the rising risk of stagflation -- a period of weak growth and high inflation last seen in the 1970s."Subdued growth will likely persist throughout the decade because of weak investment in most of the world. With inflation now running at multi-decade highs in many countries and supply expected to grow slowly, there is a risk that inflation will remain higher for longer.
"There’s a severe risk of malnutrition and of deepening hunger and even of famine in some areas", he added.
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