The World Bank now expects the global economy to grow at the rate of 3.2%, down from its earlier forecast of 4.1%.

World Bank Slashes Global Economic Growth  Prediction to 3.2% in 2022

In an updated projection, the World Bank has reduced its forecast for global economic growth to 3.2% for 2022, down from its original projection of 4.1%.


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Not only is the World Bank’s latest forecast for global economic growth down from its previous forecast at 4.1% for this year, this revised projection stands in stark contrast from the World Bank’s estimate that the global economy grew 5.7% last year.

Reasons for Revised Forecast

Policymakers from around the world are gathered together in Washington last week for meetings of the World Bank and the International Monetary Fund.

David Malpass, president of the World Bank, said, “We begin this spring meeting facing sever overlapping crisis.  There’s Covid, inflation and Russia’s invasion of Ukraine.

Wider Projections

The World Bank is also predicting sharp contrasts from prior forecasts in both the Russian and Ukrainian economies.  While Malpass believes that economies in Ukraine and Russia will experience steep declines due to the Ukrainian invasion, he also believes that countries nearby those two countries in Europe and Central Asia could also feel the effects of this war’s economic devastation.

Naturally, whatever these projections and economic implications from both the World Bank and the IMF have direct effects on international buyers of US residential and commercial properties.

Meanwhile, according to The Wall Street Journal, Fed Chairman Jerome Powell  signaled the central bank was likely to raise rates by a half point at its upcoming meeting in May.  Powell also signaled that similar half point increases could follow throughout the year.

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Thanks to The New York Times and The Wall Street Journal.

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