The Washington-based institution now expects the world economy to grow 2.9%, compared to the 4.1% expected in January.
“The world economy is expected to experience its biggest slowdown after a recovery … in more than 80 years,” the body said in its “World Economic Outlook” report on Tuesday. “The result is an increased risk of stagflation,” he added.
The new element in the World Bank’s forecasts is Russia’s invasion of Ukraine, which began at the end of February and which has many effects on the world economy: an increase in the price of raw materials, more problems for the supply chain and greater uncertainty, among others.
For 2023, the World Bank also lowered the growth outlook, in this case by 0.2 points, to 3%.
“Policymakers in emerging markets and developing economies should refrain from implementing export restrictions and price controls that could magnify increases in commodity prices,” the report said.
Among the largest economies on the planet, the World Bank forecasts for this year a growth of 2.5% in the United States (1.2 points less than January); 4.3% in China (a decrease of 0.8 points) and also 2.5% in the Eurozone (1.7 points less).
The World Bank forecasts growth of 1.5% for the largest economy in the region, Brazil; 4.5% for Argentina (after the disaster experienced in 2020); 1.7% for Mexico and 5.4% for Colombia.
In the case of Japan, a growth of 1.7% is expected and in that of Russia, a drop in economic activity of 8.9% (11.3 points less), due to its invasion of Ukraine and the economic sanctions imposed by the rest of the countries. countries.
With information from AFP and EFE
