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- World Bank President Malpass: Reducing global growth forecast for 2022 to 3.2% from 4.1%
World Bank President Malpass: Reducing global growth forecast for 2022 to 3.2% from 4.1%
World Bank President David Malpass said on Monday that the institution is reducing its forecast for global growth in 2022 to 3.2% from 4.1$ previously, reported Reuters.
Malpass noted that the bank has committed $11B for the purchase and deployment of vaccines in the current fiscal year, with total Covid-19 pandemic spending set to reach $157B in the fiscal year ending in June 2021.
Meanwhile, Malpass said the bank is preparing a new 15-month crisis response financing target of $170B, with $50B committed for use in the next three months. The new crisis envelope, he continued, would help address food insecurity, the refugee crisis and economic stress related to the war in Ukraine.
On central banks, Malpass said that they can help address inflation by using regulatory policies and shortening the duration of their bond portfolios. Long-term bonds tend to benefit countries that already have access to capital markets, he commented. Malpass added that central banks need more tools to address inflation, given that interest rate hikes alone will exacerbate rising inequality.
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