The World Bank has downgraded its growth forecast for this year's global economy, and warned against rising prices and an economic slowdown.
The bank said on Tuesday that it expects the global economy to grow 2.9 percent in 2022, down 1.2 percentage points from its estimates in January.
The forecast was lowered 1.7 percentage points for the eurozone and 1.2 percentage points for the United States. The bank expects both economies to expand 2.5 percent.
Growth for the Chinese economy is expected to fall 0.8 percentage points from the previous estimates to 4.3 percent. The Japanese economy is now projected to expand 1.7 percent, down 1.2 percentage points.
The downgrades are attributed to surging energy and grain prices following Russia's invasion of Ukraine and monetary tightening measures to curb inflation in leading economies.
The World Bank expects Russia's economy to shrink 8.9 percent, and Ukraine's economy to decrease 45.1 percent.
The World Bank President David Malpass said, "The war in Ukraine, lockdowns in China, supply-chain disruptions and the risk of stagflation are hammering growth. For many countries, recession will be hard to avoid." In stagflation, prices rise and the economy slows down at the same time. The bank also expressed concern over food shortages and worsening poverty in developing countries.