World Bank’s Global Growth Forecast
The World Bank has reduced the global growth forecast for 2022 from 4.1 percent to 3.2 percent. The growth forecast has been reduced due to the impacts of the Russian invasion of Ukraine.
Overview:
- The World Bank has proposed a new 15-month crisis financing target of USD 170 billion, out of which USD 50 billion will be committed over the next three months.
- The proposed financing target will be covering from April 2022 to June 2023.
- The World Bank stated that there will be a 4.1 percent contraction in Central Asia and the European region that comprises Russia, Ukraine, Russia, and other surrounding countries.
- Also, the forecasts are being cut for many advanced as well as developing economies due to the rise in prices of energy and food caused due to the war-related supply disruptions.
- The Word Bank had earlier implemented a USD 160 billion COVID-19 financing program.
Benefits of the 15-month crisis financing
The financing will be supporting the countries that have taken in refugees who have fled from Ukraine and will also be helping the countries that have been affected due to shortages in food. The IMF and the World Bank will also be discussing on providing new financial assistance to Ukraine.
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Month: Current Affairs - April, 2022
Category: Economy & Banking Current Affairs