The World Bank cuts its 2022 global growth forecast by almost a full percentage point, to 3.2% from 4.1%, due to the fallout from the Russian invasion of Ukraine, World Bank President David Malpass said on Monday.
Malpass told reporters on a conference call that the World Bank has responded to the additional economic stress caused by the war by proposing a new 15-month crisis funding target of $170 billion, with a target of about $50 billion of that funding over the first three months next year.
Malpass said the biggest component of the decline in the bank's growth outlook was a 4.1% contraction in the Europe and Central Asia region, including Ukraine, Russia and neighboring countries. Forecasts are also lower for advanced economies and many developing countries, Malpass said, due to spikes in food and energy prices caused by war-related supply disruptions.
