The Clap The World Bank cut its 2022 global growth forecast from 4.1% to 3.2%, citing the Russia-Ukraine crisis.
Main drivers David Malpass, President of the World Bank, attributed the reduction mainly to a projected economic slowdown of 4.1% across Europe & Central Asia due to the war in Ukraine.
Other contributors to the revised forecast included increases in prices of food & energy in developed countries, also partly due to the war in Ukraine.
Why this matters The World Bank is preparing a relief package bigger than that of Covid-19. The relief package would cover the fifteen months from April 2022 through June 2023, & would be worth around $170 billion (compared to the Covid-19’s ~$160 billion relief package).