World Bank cuts East Asia’s 2022 GDP forecast on war in Ukraine

© . FILE PHOTO: People cross a street in front of the Central Business District (CBD) skyline in Beijing, China, Dec. 15, 2020 during the morning rush hour. REUTERS/Thomas Peter MANILA () – The World Bank lowered its growth forecast for East Asia and the Pacific Ocean for 2022 to reflect the economic impact of Russia’s invasion of Ukraine, and warns that the region could lose further momentum if conditions deteriorate. The Washington-based lender said in a report Tuesday that it expected growth in 2022 in the developing East Asia and the Pacific (EAP) region, which includes China, to grow 5.0% percent, lower than forecast. from 5.4% in October. But growth could slow to 4.0% if conditions deteriorate and government policies are weaker, the World Bank said. The Chinese economy is expected to grow by 5.0% this year, down from an earlier estimate of 5.4%. “The region faces a triad of shocks that threaten to undermine growth momentum,” said the World Bank’s chief economist Aaditya Mattoo for East Asia and the Pacific. The war between Russia and Ukraine, which Mattoo said was the “greatest risk” to the region’s growth prospects, is leading to increases in food and fuel prices, financial volatility and diminished confidence around the world. Mattoo said the Russian invasion of Ukraine was more concerning as the region continued to suffer from the effects of the COVID-19 pandemic, a structural slowdown in China and faster inflation that could lead to more rapid monetary tightening. US The impact of the war on economies in East Asia and the Pacific would vary depending on their exposure and resilience, Mattoo said. Excluding China, production in the rest of the region is expected to grow by 4.8% this year. “Just as the economies of East Asia and the Pacific recovered from the pandemic shock, the war in Ukraine is weighing on growth momentum,” said Manuela Ferro (NYSE:), vice president of the World Bank for East Asia and the United Nations. Pacific (NYSE:) in a statement. † “The region’s largely strong foundations and sound policies should help it weather these storms.”

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