tirsdag 5. april 2022

Ukraine war to slow growth and drive up poverty in Asia, World Bank warns

Russia’s invasion of Ukraine has further dampened the economic prospects for developing countries in east Asia and the Pacific, meaning lower economic growth and higher poverty in the region this year, the World Bank has warned. The Ukraine factor came on top of the existing risks that the region – home to 2.1 billion people and stretching from China to Papua New Guinea – has been facing in recent years. They included the ongoing Covid-19 pandemic, the financial tightening in the US, and the pandemic resurgence amid China’s zero-Covid policies.

China, which accounts for 86% of regional output, is forecast to expand 5% in 2022, 0.4 of a percentage point less than the World Bank’s October estimate. But in the Bank’s downside scenario, the world’s second-largest economy could grow at just 4%.