Geneva, May 18 (EFE). The United Nations on Wednesday dropped its global economic growth forecast for this year from 4% to 3.1% due to the war in Ukraine.
The UN World Economic Situation and Prospects 2022 report said the drop was a consequence of increasing global food and commodity prices and exacerbated inflationary pressures, caused by Russia’s invasion of Ukraine, as well as the fragile recovery from the Covid-19 pandemic.
“The baseline forecast faces significant downside risks from further intensification of the war in Ukraine and potential new waves of the pandemic,” the report said.
Growth forecasts of major economies like the United States, the European Union and China have also been revised downward.
The US is expected to grow by 2.6%, the EU by 2.7% and China by 4.5% in 2022, according to the report.
The war has also impacted the developing world, with developing countries as a group projected to grow by 4.1% in 2022, down from 6.7% in 2021.
“This slowdown, and the war in Ukraine – triggering sharp increases in food and fertilizer prices – will hit the developing countries particularly hard, exacerbating food insecurity and increasing poverty,” the UN warned. EFE