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Fuel and food prices have increased rapidly, hitting vulnerable populations in low-income countries hardest. At the same time, economic damage from the conflict will contribute to a significant slowdown in global growth in 2022 and add to inflation. World Economic Outlook, April 2022: War Sets Back The Global Recoveryĭescription: The war in Ukraine has triggered a costly humanitarian crisis that demands a peaceful resolution. Structural reforms can further support the fight against inflation by improving productivity and easing supply constraints, while multilateral cooperation is necessary for fast-tracking the green energy transition and preventing fragmentation.

Monetary policy should stay the course to restore price stability, and fiscal policy should aim to alleviate the cost-of-living pressures while maintaining a sufficiently tight stance aligned with monetary policy. Global inflation is forecast to rise from 4.7 percent in 2021 to 8.8 percent in 2022 but to decline to 6.5 percent in 2023 and to 4.1 percent by 2024. This is the weakest growth profile since 2001 except for the global financial crisis and the acute phase of the COVID-19 pandemic. Global growth is forecast to slow from 6.0 percent in 2021 to 3.2 percent in 2022 and 2.7 percent in 2023. The cost-of-living crisis, tightening financial conditions in most regions, Russia’s invasion of Ukraine, and the lingering COVID-19 pandemic all weigh heavily on the outlook. World Economic Outlook, October 2022: Countering the Cost-of-Living Crisisĭescription: Global economic activity is experiencing a broad-based and sharper-than-expected slowdown, with inflation higher than seen in several decades.

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