The United Nations Conference on Trade and Development (UNCTAD) lowered its forecast for global economic growth in 2022 from 3.6% to 2.6% due to the situation around Ukraine and changes in the macroeconomic policies of countries in recent months. In addition to a deep recession in Russia this year, a significant slowdown in growth is expected in some countries of Western Europe, Central, South and Southeast Asia, the organization's report notes. According to UNCTAD Secretary-General Rebecca Greenspan, the economic impact of events in Ukraine will exacerbate the ongoing economic downturn around the world and weaken the recovery from the coronavirus pandemic. UNCTAD also notes that the Ukraine conflict has increased upward pressure on global energy and commodity prices, and trade disruptions and the effects of sanctions will have a chilling effect on long-term investment. Greenspan also stressed that rising food and fuel prices would immediately affect the most vulnerable people in developing countries, leading to hunger and deprivation for households. In addition, volatility in capital flows, fluctuations in exchange rates and rising borrowing costs are a growing concern, especially for the least developed and developing countries.
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