Participants are standing near the World Bank logo at the International Monetary Fund-World Bank Annual Meeting 2018 in Nusa Dua, Bali, Indonesia on October 12, 2018.
Johannes Christ | Reuters
Washington-World Bank Lowered annual global growth forecast In 2022 on Monday, it decreased from 4.1% to 3.2% with an almost complete percentage point, Russia invades Ukraine It is affecting the world economy.
World Bank Governor David Malpass told reporters in a conference call that the biggest single factor in predicting a decline in growth is the projected economic contraction of 4.1% across Europe and Central Asia. according to To Reuters.
Other factors behind the slowdown in growth from January’s forecasts include rising food and fuel costs borne by consumers in developed countries around the world, Malpas said.
These are in part the result of Western sanctions on Russia’s energy, which has pushed up oil and gas prices around the world. Disruption of supply to Ukraine’s agricultural exports has also been cited as a factor pushing up prices.
Russia has blocked Ukraine’s major Black Sea ports, and it is extremely dangerous for vessels carrying grain and other products to travel the major maritime routes connecting Ukraine with the rest of the world.
The World Bank is “preparing for an ongoing crisis response in light of multiple crises,” Malpas told reporters. “In the coming weeks, we will discuss with the Board a new 15-month crisis response envelope of approximately $ 170 billion covering April 2022 to June 2023.”
This Ukrainian crisis loan package is even bigger than the one organized by the World Bank COVID-19 The bailout was the highest at $ 160 billion.
Still, the damage that Russia’s invasion of Ukraine has caused to the world economy is inferior to that of Russia, and to a lesser extent, the devastating effects it has had on the economy of Ukraine.
Earlier this month, the World Bank predicted that Ukraine’s annual GDP would decline by 45.1%. This is an amazing number for countries with more than 40 million people.
Before the war, analysts predicted that Ukraine’s GDP would rise sharply over the next few years.
Russia’s economy has also been hit hard. This is mainly due to the effects of sanctions and embargoes supported by NATO and Western countries.
In early April, the World Bank predicted that Moscow’s GDP would fall 11.2% this year as a result of sanctions.
President of Russia Vladimir Putin On Monday, Western nations claimed to have failed what he called their “electric shock” campaign of economic warfare against Russia.
After a sharp fall in the first few weeks of the war, the Russian ruble has regained much of its value. However, economists say this recovery is an illusion created by the strict domestic currency controls imposed by the Kremlin, which falsely inflated the value of the ruble in Russia.
