Most recently, the World Bank had to cut its global growth forecast for 2022 by almost 1%, from 4.1% to $ 3.2 due to the effects of the conflict between Russia and Ukraine.
World Bank President David Malpass on Monday noted that the World Bank chose to respond to additional economic pressures resulting from the war by proposing a new 15 -month crisis financing target of $ 170 billion. A total of $ 50 billion will be awarded over the next 3 months.
Malpass said the biggest component of the reduction in the bank's growth forecast was a 4.1% contraction in the European and Central Asian region comprising Ukraine, Russia and surrounding countries. Growth forecasts are also being reduced for developed and developing economies due to spikes in food and energy prices caused by war-related supply disruptions, Malpass said.
The IMF, on the other hand, is expected to take similar steps by reducing its global growth on Tuesday.
According to Malpass, their party is preparing for an ongoing crisis response, given the various crises being faced. In the next few weeks, the World Bank will discuss follow -up measures in leveraging $ 170 billion in funds to cover April 2022 to June 2023.
The stimulus plan follows the World Bank’s $ 160 billion Covid-19 funding program, which Malpass says $ 157 billion has been implemented by June 2021.
Malpass said the funding would partly support countries that have received refugees from Ukraine and would also help address problems in countries affected by food shortages.
