The World Bank has reduced its forecast for global growth in 2022 by nearly a full percentage point, citing the impact of Russia's unprovoked invasion of Ukraine.
World Bank President David Malpass said Monday that the bank is shrinking its expectations from 4.1% to 3.2% in response to the ongoing economic stresses of the war.
He told reporters that he is proposing a 15-month, crisis-financing plan with a target of $170 billion and the goal of committing about $50 billion of the financing over the next three months.
The most significant factor that led into the bank's forecast reduction was a 4.1% contraction in the Europe and Central Asian region, which includes Ukraine, Russia and their neighboring nations.
Developing nations have also had their forecasts cut due to spikes in food and energy prices caused by supply disruptions.
"We're preparing for a continued crisis response, given the multiple crises," Malpass said. "Over the next few weeks, I expect to discuss with our board, a new 15-month crisis response envelope of around $170 billion to cover April 2022 through June 2023."
The crisis financing will help support nations that have taken in refugees from Ukraine in addition to aiding countries experiencing food shortages.
The plan follows a prior $160 billion COVID-19 financing program.
The International Monetary Fund on Tuesday also cut its global growth forecast.