World bank cuts global growth forecast for 2022

By Tuba Sahin

ANKARA (AA) - The World Bank on Tuesday lowered its global economic growth forecast to 4.1% for this year, down 0.2 percentage points from its previous forecast.

Next year the global economy is projected to grow 3.2%, revised upward 0.1 percentage point, the bank said in its latest Global Economic Prospects report.

The revisions stemmed from pent-up demand dissipating, and fiscal and monetary support unwinding across the world.

The global economy is slowing down amid threats from COVID-19 variants and a rise in inflation, debt, and income inequality that could endanger the recovery in emerging and developing economies, it said.

The bank said the pandemic will likely continue to disrupt economic activity in the near term with the rapid spread of the omicron variant.

The notable deceleration in major economies, including the US and China, will weigh on external demand in emerging and developing economies, it warned.

The bank projected growth in advanced economies would decline from 5% in 2021 to 3.8% this year, and 2.3% in 2023 while emerging and developing economies are expected to grow 4.6% in 2022 and 4.4% next year.

The bank also cut its growth projection for the world's largest two economies, as the US is expected to grow 3.7% this year and China, 5.1%.

Turkiye's economy is forecast to expand by 2% in 2022 and 3% in 2023, both revised downward from the previous projection.