World Bank Cuts Global Economic Growth to 4.1% in 2022

The World Bank has lowered its forecast for the growth of the global economy during the current year 2022, with the continuation of the pandemic, the decline in monetary and fiscal policy support, and supply chain turmoil.

The bank said in a report that global gross domestic product is likely to grow by 4.1% in 2022, which was lower than previous estimates issued last June at 4.3%.

It estimates that the global economy recorded a growth of 5.5% in 2021, with a relative recovery from the closure associated with the “COVID-19”, noting that growth will continue to slow next year, recording 3.2%.

The bank cut its forecast for US economic growth this year to 3.7%, down 0.5% from previous estimates, and lowered its forecast for China's economic growth by 0.3% to 5.1%.

WB has indicated that global output is likely to remain below pre-pandemic levels by 2023 in all regions in emerging market and developing economies, but the gap will close in advanced economies.

World Bank Group President David Malpass said: "The global economy is facing several obstacles simultaneously, which are inflation and uncertainty about economic policy, in addition to the growing inequality and security challenges that particularly harm developing countries."