The United Nations on Wednesday sharply lowered its global economic growth forecast for this year from 4% to 3.1%, saying the war in Ukraine has increased global food and commodity prices and increased inflationary pressures, boosting the fragile recovery from the Kovid-19 epidemic. .
The United Nations Department of Economic and Social Affairs has forecast in mid-2022 that the growth potential is broad-based, including the world’s largest economies – the United States, China and most notably the European Union – and most other developed and developing countries.
The World Economic Situation and Prospects report further warns that the current forecast of 3.1% “poses significant negative risks from further escalation of the war in Ukraine and possible new wave of epidemics.” “The recession and the war in Ukraine – the sharp rise in food and fertilizer prices – will hit hard, especially developing countries, exacerbate food insecurity and increase poverty,” the report said.
According to the UN forecast, with sharp rise in food and energy prices, global inflation is projected to double to an average of 2.9% between 2010-2020 and 6.7% in 2022.
UN Secretary-General Antonio Guterres said: “The war in Ukraine – at all levels – is creating a crisis that is destroying the global energy market, disrupting the financial system and exacerbating the vulnerabilities for the developing world.” He called for “rapid and decisive action” to ensure a steady flow of food and energy supplies to the open market, saying that lifting export restrictions, releasing reserves and reserves if necessary and tackling food inflation would “calm down” market instability. -The page report says that Ukraine’s war is not only imposing heavy tolls on its economy and Russia, but also on the economies of its neighbors in Central Asia and Europe.
The European Union’s economy – which imported 57.5% of its energy costs in 2020 and suffered the most from a disruption in energy supplies from Russia – is now expected to grow only 2.7% this year, down from 3.9% in the January forecast. The report said.
The U.S. economy is expected to grow 2.6% in 2022 and 1.8% in 2023, a significant downward correction from the January forecast, the report said, stubbornly high inflation, aggressive US Federal Reserve tightening monetary tightening and direct spillover war in Ukraine.
In China, the United Nations says the economy is expected to grow 4.5% this year, down from 8.1% in 2021. It noted rolling lockdowns in major cities to contain omicron waves in the first quarter of the Covid-19 epidemic. Years
“The slowdown in economic activity has prolonged supply chain disruptions, which are negatively affecting other developing countries through trade channels,” the report said. “Besides, rising commodity prices contribute to higher production costs across the region, adversely affecting exports.” As a group, the United Nations says the economies of developing countries are forecasting 4.1% growth this year, down from 6.7% in 2021.