rain.png
Monday May 23rd, 2022 8:20AM

Outbreaks, bottlenecks expected to slow global growth in '22

By The Associated Press
Related Articles
  Contact Editor

WASHINGTON (AP) — The World Bank is downgrading its outlook for the global economy, blaming continuing outbreaks of COVID-19, a reduction in government economic support and ongoing bottlenecks in global supply chains.

The 189-country, anti-poverty agency forecasts worldwide economic growth of 4.1% this year, down from the 4.3% growth it was forecasting last June. It's also down from the 5.5% expansion it estimates the global economy tallied in 2021.

In its Global Economic Prospects report out Tuesday, the World Bank projects that the U.S. economy will grow 3.7% this year, down from 5.6% in 2021. It expects China, the world’s second-biggest economy, to see growth decelerate to 5.1% in 2022 from 8% last year.

The 19 European countries that share the euro currency are expected to collectively grow 4.2% this year, down from 5.2% in 2021. And Japan is forecast to register 2.9% growth in 2022, up from 1.7% last year.

Emerging and developing economies are forecast to collectively grow 4.6% this year, down from 6.3% in 2021.

The arrival of COVID-19 in early 2020 slammed global economic output. The world economy shrank by 3.4% in 2020. Massive relief provided by governments and super-low interest rates engineered by central banks — and eventually the rollout of vaccines — triggered an unexpectedly strong recovery last year.

But the speed of the rebound caught businesses by surprise. They have scrambled to find raw materials and supplies to meet customer demand and the ships, trains and trucks to transport them. Especially in the United States, they have struggled to find workers to fill job openings.

One result has been the highest global inflation rates since 2008. Central banks are now reducing their support for economic growth and considered raising interest rates to combat higher prices.

“The world economy is simultaneously facing COVID-19, inflation, and policy uncertainty, with government spending and monetary policies in uncharted territory,” World Bank President David Malpass said.

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Economy, AP Business - Industries, AP Business - Financial Services
© Copyright 2022 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Georgia, Tide, Michigan, Cincinnati, Baylor top final Top 25
Georgia is No. 1 in the final Associated Press college football poll of the season after winning its second national title by beating Alabama
11:06AM ( 11 minutes ago )
Brrr! Some schools close as extreme cold grips US Northeast
A mass of arctic air swept into the Northeast, bringing bone-chilling sub-zero temperatures and closing schools across the region for the second time in less than a week
11:03AM ( 14 minutes ago )
EPA moves to crack down on dangerous coal ash storage ponds
The Environmental Protection Agency is taking its first major action to address toxic wastewater from coal-burning power plants
11:02AM ( 15 minutes ago )
Associated Press (AP)
China locks down 3rd city, raising affected to 20 million
A third Chinese city has locked down its residents because of a COVID-19 outbreak, raising the number confined to their homes in China to about 20 million people
10:33AM ( 44 minutes ago )
US stocks are off to another weak start, led lower by tech
Stocks are off to another weak start Tuesday as traders try to calibrate how markets and the economy will handle the higher interest rates that are likely on the way from the Federal Reserve this year
9:44AM ( 1 hour ago )
World Economic Forum warns cyber risks add to climate threat
The World Economic Forum says cyberthreats and the growing space race are emerging risks to the global economy, on top of existing challenges posed by climate change and the coronavirus pandemic
9:22AM ( 1 hour ago )
AP Business
Trade data: Myanmar teak exports helping fund military rule
A report based on U.S. trade data shows American companies are still importing teak from Myanmar despite sanctions imposed after the military seized power
6:43AM ( 4 hours ago )
N Korea fires possible missile into sea amid stalled talks
South Korea and Japan say North Korea has fired what appeared to be a ballistic missile into its eastern sea
5:14AM ( 6 hours ago )
European shares rise, Asia declines, eyeing Fed, omicron
European benchmarks have risen after Asian shares mostly declined following a retreat on Wall Street
4:40AM ( 6 hours ago )
AP Business - Economy
Home COVID tests to be covered by insurers starting Saturday
Starting Saturday, private health insurers will be required to cover up to eight home COVID-19 tests per month for those on their plans
9:46PM ( 13 hours ago )
California governor proposes tax cuts, expanded health care
Gov. Gavin Newsom wants to make California the first state to cover all low-income state residents under its Medicaid plan regardless of their immigration status
8:46PM ( 14 hours ago )
Question for Fed: Has it waited too long to fight inflation?
With inflation surging, unemployment falling and wages rising, some economists are warning that the Federal Reserve may have waited too long to reverse its ultra-low-rate policies — a delay that could put the economy at heightened risk
3:30PM ( 19 hours ago )
AP Business - Industries
Stocks end lower after mixed jobs data as tech sinks again
Stocks ended lower on Wall Street Friday and Treasury yields rose as investors anticipated the Federal Reserve will stay on course to raise interest rates as soon as March
5:21PM ( 3 days ago )
Stocks wobble following mixed jobs data as tech sinks again
Stocks turned mixed Friday as Treasury yields rise, with much of Wall Street seeing the Federal Reserve on course to raise interest rates as soon as March despite a mixed report on the U.S. jobs market
2:05PM ( 3 days ago )
Stocks slip following mixed jobs data as tech sinks again
Stocks are slipping Friday as Treasury yields rise, with much of Wall Street seeing the Federal Reserve on course to raise interest rates as soon as March despite a mixed report on the U.S. jobs market
11:20AM ( 3 days ago )
AP Business - Financial Services
Georgia, Tide, Michigan, Cincinnati, Baylor top final Top 25
Georgia is No. 1 in the final Associated Press college football poll of the season after winning its second national title by beating Alabama
11:06AM ( 11 minutes ago )
Brrr! Some schools close as extreme cold grips US Northeast
A mass of arctic air swept into the Northeast, bringing bone-chilling sub-zero temperatures and closing schools across the region for the second time in less than a week
11:03AM ( 14 minutes ago )
EPA moves to crack down on dangerous coal ash storage ponds
The Environmental Protection Agency is taking its first major action to address toxic wastewater from coal-burning power plants
11:02AM ( 15 minutes ago )
Kremlin: Not much optimism after Russia-US talks on Ukraine
The Kremlin says the security talks with the U.S. over tensions in Ukraine have given little reason for optimism, adding that Russia would wait for the outcome of other meetings this week before deciding whether it’s worth to continue negotiations
10:53AM ( 24 minutes ago )
US announces $308 million in aid for Afghans as crisis grows
The United States has announced $308 million in additional humanitarian assistance for Afghanistan
10:50AM ( 27 minutes ago )