Economy World News

World Bank downgrades global growth outlook on Ukraine war

World Bank downgrades global growth outlook on Ukraine war
Written by Maritime First

… As South African police arrest 77 illegal miners***

The World Bank has lowered its forecast for global economic growth this year, citing the impact of the war in Ukraine.

World Bank President David Malpass told reporters in a conference call that the global growth outlook was reduced to 3.2 from 4.1 per cent.

Also read: War in Ukraine pushing poverty higher —World Bank

The downgrade largely reflects the weaknesses seen in Europe and central Asia, which cover Russia and Ukraine, he said.

Forecasts for advanced and many developing economies were also lowered because of high inflation caused by the supply-chain disruption after Russia’s invasion of Ukraine.

The World Bank mobilised nearly one billion dollars in emergency financing for Ukraine, and announced another 1.5 billion dollars to support essential government services, the top official said.

Given the economic stress faced by global economies, Malpass said the lender was planning to mobilise a new 15-month crisis response envelope of 170 billion dollars with about 50 billion dollars to be committed over the next three months.

Malpass said this was a continued, massive crisis response given the continuation of the crisis.

Helping this effort was the front loading of IDA19, which was an initiative to provide funding support to the world’s poorest and most vulnerable countries.

“We’ll be starting IDA20 on July 1, making 93 billion dollars available to IDA countries, the poorest,’’ he said.

The World Bank president observed that the debt crisis was expected to continue to worsen this year.

Further, Malpass urged the international community to immediately step up emergency assistance for food insecurity and help bolster social safety nets.

Malpass’s conference call was held on the sidelines of the Spring Meetings of the International Monetary Fund and World Bank Group which began on Monday.

The Spring Meeting will end on April 23.

In another development, The South African police on Tuesday reported that they have arrested 77 illegal miners from April 14 to 18 in Orkney, North West Province for mining without a license.

The police said a multi-disciplinary team of police and a mining rescue team launched a crackdown on illegal miners and arrested some underground after they called for help when some of them were stuck underground.

North West Province police spokesperson Sabata Mokgwabone said “the operation follows a request to the mine management by illegal miners to be assisted to get out of the mine shaft as they were starving.

“During the operation which was conducted at Shaft no. 5, in Orkney, four decomposed bodies were brought up by the illegal miners on April 15, 2022.

“Of the 77 arrested illegal miners who were all medically examined, 60 are from Lesotho, 13 from Mozambique and four are Zimbabwean nationals. Meanwhile, a formal identification process of the four bodies was underway.’’

Mokgwabone said the arrested illegal miners will appear in court on Tuesday facing charges of trespassing, illegal mining and contravention of the Immigration Act.

Illegal foreigners from neighboring countries facing economic challenges have been flocking into South Africa in search of greener pastures. Some engage in crime while some go to abandoned mines to do illegal mining.

 

About the author

Maritime First