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World Bank says war to cut global growth, boosts financing target
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WASHINGTON (Reuters) – The World Bank is reducing its global growth forecast for 2022 by nearly a full percentage point, to 3.2% from 4.1%, due to the impacts from Russia’s invasion of Ukraine, World Bank President David Malpass said on Monday.
WASHINGTON (Reuters) – The World Bank is reducing its global growth forecast for 2022 by nearly a full percentage point, to 3.2% from 4.1%, due to the impacts from Russia’s invasion of Ukraine, World Bank President David Malpass said on Monday.
Malpass told reporters on a conference call that the World Bank was responding to the added economic stresses from the war by proposing a new, 15-month crisis financing target of $170 billion, with a goal to commit about $50 billion of this financing over the next three months.
Malpass said the biggest component of the bank’s growth forecast reduction was a 4.1% contraction in the Europe and Central Asia region — comprising Ukraine, Russia and surrounding countries. Forecasts also are being cut for advanced and many developing economies because of spikes in food and energy prices caused by war-related supply disruptions, Malpass said.
(Reporting by David Lawder; Editing by Chizu Nomiyama)
Gross Domestic Product (GDP) is the total monetary value of all goods and services produced within a country's borders in a specific time period, used as a broad measure of economic activity.
Economic growth refers to an increase in the production of goods and services in an economy over a period of time, often measured as the percentage increase in real GDP.
Financing refers to the process of providing funds for business activities, making purchases, or investing. It can involve loans, credit, or other financial instruments.
An international financial institution is an organization that provides financial support and advice to countries for development projects and economic stability, such as the World Bank or the International Monetary Fund.
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