The World Bank downgrades its outlook for global economic growth this year due to Russia’s invasion of Ukraine and is set to mobilize bigger funding than the Covid-19 response.
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The Washington-based organization has cut its estimate for global growth in 2022 to 3.2% from a January estimate of 4.1%.
The decline was attributable to a downgrade in the outlook for Europe and Central Asia, which include Russia and Ukraine. The global outlook for this year compares with 5.7% growth in 2021.
The World Bank chief stated that he expects to review a new 15-month crisis-response package of nearly $170B to cover April 2022 through June of next year with the bank’s board in the coming weeks.
Malpass’s views and plans emerge ahead of the IMF and World Bank spring meetings happening this week in Washington, whereby inflation and the shock of the Ukraine war are set to feature.
Last month, the World Bank announced a $3B funding package for Ukraine that is expected to be approved and provided over the coming months.