The grinding war in Ukraine, ongoing supply chain chokeholds, Covid-related lockdowns in China and dizzying rises in energy and food prices are battering economies all along the income ladder, saddling them with slower growth and surging inflation.
This suite of problems is “hammering growth,” David Malpass, president of the World Bank, said in a statement. “For many countries, recession will be hard to avoid.”
Global growth is expected to slow to 2.9 percent this year from 5.7 percent in 2021. The outlook, delivered in the bank’s latest Global Economic Prospects report, is not only grimmer than one produced six months ago, before war erupted in Ukraine, but also below the 3.6 percent forecast in April by the International Monetary Fund.
Other than a handful of oil exporting nations like Saudi Arabia, which are benefiting from prices of more than $100 a barrel, there is a barely a spot on the globe that has not seen its prospects dim. Among the most advanced economies like the United States and Europe, growth is forecast to slow to 2.5 percent this year. China’s growth is projected to fall to 4.3 percent from 8.1 percent in 2021.