The World Bank now sees global growth at 3.2%, compared to its January projection of 4.1% due to the impacts of the Ukrainian war. DJI is up +0.14%, DAX is up +0.62%.
- The downgraded growth forecast comes even as the World Bank warned that its funding from the resulting impacts of the war will be $170 billion, higher than a package of $157 billion during the initial phase of Covid-19 pandemic.
- David Malpass, the World Bank’s president, says out of the intended funding, $50 billion will be deployed in the next three months. The total funding will last up to June next year.
- The World Bank head is also cautioning about debt distress in the low and middle-income countries. He says the biggest economies have achieved little progress in enabling the debt-ridden economies to restructure debt.
- The global institution added to the growing concerns of a recession, pointing out many nations face financial distress, with 60% in the developing world already in debt distress or likely to face one.
- It now remains to be seen the major conclusions of the World Bank as it prepares to meet the International Monetary Fund soon where the institutions will table issues on the Ukrainian war, inflation, debt, and food security.
- Global economy expanded by 5.7% in 2021 as economies recovered from the Covid-19 pandemic.