The United Nations (UN) revised its global growth forecast for 2022 from 4.0% to 3.1%. In a more recent report released Thursday (December 19th), the agency says Russia’s war in Ukraine has sparked a “devastating” humanitarian crisis in Europe, as well as upsetting the pandemic’s fragile economic recovery and driving up food and food prices. goods worldwide.
With inflationary pressures intensifying in the midst of the conflict, the UN predicts global inflation will double this year to 6.7%, the average of 2.9% between 2010 and 2020.
The United Nations says declines in growth forecasts are common, including major economies such as the United States, China and Europe, and most advanced and emerging economies.
Developing and commodity-importing economies face the biggest cuts in forecasts given high energy and food prices. Food insecurity is likely to worsen, particularly in Africa.
In addition to the humanitarian crisis and loss of life in Europe, the UN underlines that the war brings economic difficulties not only for Russia and Ukraine, but also for neighboring countries in Central Asia and Europe.
Especially in the European Union, the increase in energy costs should come as a shock. In 2022, the bloc’s growth outlook dropped to 2.7% from the 3.9% projected in January.
The progression of inflation in developing or less developed economies has reduced the purchasing power of families. The UN states that poverty is more common in these countries and wage growth remains limited. “Monetary tightening in the US is expected to increase borrowing costs and worsen financing deficits in developing countries, including the least developed.”
source: Noticias
