The UN’s trade and development body UNCTAD has downgraded its global economic growth projection for 2022 due to shocks from the Ukraine war and changes in macroeconomic policies that put developing countries particularly at risk.
Significant slowdowns in growth are expected in parts of Western Europe and Central, South and South-East Asia, a new UNCTAD report says.
The ongoing war in Ukraine is likely to reinforce the monetary tightening trend in advanced countries following similar moves that began in late 2021.
UNCTAD is worried that a combination of weakening global demand, insufficient policy coordination at the international level and elevated debt burdens from the pandemic will push some developing countries into a downward spiral of insolvency, recession and arrested development.