Due to the effects of Russia’s invasion of Ukraine, the World Bank is lowering its global growth prediction for 2022 by nearly a half percentage point, to 3.2 percent from 4.1 percent, according to World Bank President David Malpass.

On a conference call with reporters, Malpass said the World Bank was responding to the war’s increased economic stresses by proposing a new $170 billion crisis financing objective for the next 15 months, with an aim of committing around $50 billion of that money in the next three months, Reuters reports.

The largest component of the bank’s growth projection cut, according to Mr Malpass, is a 4.1 percent decline in the Europe and Central Asia region, which includes Ukraine, Russia, and neighboring nations. Food and energy costs have risen sharply as a result of war-related supply interruptions, causing forecasts to be lowered for advanced and many developing economies, according to Mr Malpass.

On Tuesday, the International Monetary Fund is set to lower its global growth prediction.

“Given the various crises, we’re planning for a continued crisis response,” Mr Malpass added. “I intend to negotiate a fresh 15-month crisis response envelope of roughly $170 billion with our board during the next several weeks, covering April 2022 through June 2023.”

The initiative builds on a $160 billion World Bank COVID-19 funding package, of which $157 billion has been pledged through June 2021, according to Mr Malpass. He stated that the funds will be used to help countries that have taken in Ukrainian refugees as well as countries that are experiencing food shortages.

Mr Malpass stated that World Bank and IMF member countries will meet this week to discuss further assistance for Ukraine, and that he expects a number of donor countries to make concrete promises.

Previous articleAmazon CEO Says Not Adding Cryptocurrency as Payment Option Anytime Soon
Next articleExternal Funding to Boost Ukraine Financial Stability: IMF Chief