The World Bank has lowered its outlook for global economic growth by almost one percentage point. According to the organization, lowering of the forecast is due to the situation in Ukraine. In addition, the global economy is affected by the coronavirus lockdowns in China and rising energy prices. Reuters reports, citing a statement by the President of the World Bank Group David Malpass.
The World Bank lowered its global growth forecast for the second time since the beginning of the year — from 4.1 percent to 3.2 percent.
According to Malpass, this is a reaction to additional economic stresses. David Malpass named coronavirus lockdowns in China, rising prices for energy resources, fertilizers, food, and a high likelihood of raising interest rates among the factors behind the slowdown in economic activity.
He noted that the outlook is unfavorable for all developed and developing economies in Europe and Central Asia.
In early 2022, the World Bank cut its forecast for global economic growth by 0.2 percentage points to 4.1 percent. According to the World Bank, after a record growth by 5.5 percent in 2021, the economy should have entered a phase of marked slowdown due to COVID-19, inflation, political uncertainty, government spending and monetary policy, which are in uncharted territory.
