The Strategist

EC: The world lost 2.5 per cent of economic growth

05/19/2022 - 09:08

The European Commission (EC) has revised its global macroeconomic projection to account for the impact of the Ukrainian war and Russian sanctions.

Global economic growth is expected to decrease from 5.7 percent to 3.2 percent in 2022, according to the European Union's regulatory body, and from 4 percent to 2.7 percent - in eurozone countries.

If all limitations stay in place, the EC forecasts a 10.4 percent drop in GDP for Russia.

The rate of development will also slow in China, where economic activity is hampered not just by domestic anti-covid restrictions and lockdowns, but also by a drop in external demand.

On Monday, May 16th, the European Commission updated its estimate, examining the global economy as a whole, as well as the economies of individual countries. Global GDP growth forecasts for 2022 have been cut to 3.2 percent from 5.7 percent previously (3.5 percent growth is expected next year, this estimate remained unchanged).