The World Bank has cut its 2022 global economic growth forecast by almost 1%, to 3.2% from the previous 4.1%, following the impact of Russia's invasion of Ukraine, World Bank President David Malpass said Monday (18/4).
According to Malpass, the World Bank sees additional economic pressure from Russia's war in Ukraine. This financial institution also proposed a new target of 15-month crisis financing of US$ 170 billion, with US$ 50 billion for the next three months.
Malpass explained that the biggest component of the reduction in the World Bank's forecast for global economic growth this year was a 4.1% contraction in Europe and Central Asia, which consisted of Ukraine, Russia and surrounding countries.
The World Bank is also slashing economic growth in developed and many developing countries due to soaring food and energy prices due to supply disruptions related to Russia's war in Ukraine, Malpass added.
"We are preparing a sustainable crisis response, given the many crises," Malpass said.
"Over the next few weeks, I look forward to discussing with our board a new 15-month crisis financing response of around US$170 billion covering April 2022 to June 2023," he said.
The plan is a continuation of the World Bank's US$ 160 billion Covid-19 financing program, of which US$157 billion has been disbursed by June 2021, according to Malpass.
Malpass said the financing of the crisis would partially support countries that have accepted refugees from Ukraine and would also help address problems in countries affected by food shortages.
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