IOO - Global growth forecast now slashed to 2.9% amid macro economic dents: World Bank

Global economic expansion forecast for 2022 was slashed by the World Bank amidst several years of above-average inflation and below-average growth lie ahead with potentially destabilizing consequences for low- and middle-income economies. Russian invasion of Ukraine denting activity, investment, and trade in the near term also added to the slowdown and expands risk of stagflation. Growth is now pegged at 2.9% in 2022 from its earlier forecasted 4.1% in January; 2021 saw growth at 5.7%. U.S. economy is seen expanding 2.5% in 2022, 1.2 percentage points below the prior projection; China's economic expansion is seen at 4.3% amid larger-than-expected damage from Covid-19 and related lockdowns. Euro-area growth is projected to slow to 2.5%, 1.7 percentage points less than seen in January. While the bank had projected expansion for both the economies, now it sees Ukraine's economy to shrink 45.1% this year, while Russia's may drop 8.9%. Growth in advanced economies is projected

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Global growth forecast now slashed to 2.9% amid macro economic dents: World Bank