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• Global economic expansion is expected to fall to 2.9% this year compared to 5.7% in 2021
The World Bank reduced its global growth forecast on Tuesday, warning that many countries could fall into recession.
According to the Global Economic Prospects report, global economic expansion is expected to fall to 2.9% this year compared to 5.7% in 2021 and lower than the forecast of 4.1% in January.
The global economy is facing the risk of stagflation as most countries are experiencing high inflation, the report said.
Global economy, which was already affected by Covid-19 pandemic, is further damaged due to Russia’s invasion of Ukraine.
“The war in Ukraine, lockdowns in China, supply-chain disruptions, and the risk of stagflation are hammering growth. For many countries, recession will be hard to avoid,” World Bank President David Malpass said.
The World Bank forecast growth in advanced economies to fall to 2.6% in 2022 from 5.1% in 2021 while emerging market and developing economies’ growth is expected to drop to 3.4% in 2022 from 6.6% in 2021.
Picture Credits: Getty Images
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