The World Bank has warned that countries around the world are risking recession as the Ukraine war wreaks havoc on economies already battered by the Covid outbreak.
Less developed countries in Europe and east Asia are in the midst of a "major recession," according to the report.
According to World Bank President David Malpass, the likelihood of high inflation and poor growth, or "stagflation," is also increasing.
The cost of energy and food has been growing all across the world.
"Growth is being hammered by the war in Ukraine, Chinese lockdowns, supply-chain disruptions, and the threat of stagflation. Recession will be difficult to prevent in many nations "Mr. Malpass explained.
He also cautioned that the risk of stagflation was "substantial" in the World Bank's June Global Economic Prospects report.
"Because of low investment in most of the world, growth will be slow for the rest of the decade. With inflation in many countries currently at multi-decade highs and supply likely to expand slowly, there is a danger that inflation may continue to rise."
On Tuesday, the World Bank granted $1.49 billion (£1.2 billion) in new funds for Ukraine, which "would be used to pay for wages for government and social employees," according to the bank.
The additional funding is part of a $4 billion assistance package for the country that includes healthcare, education, and sanitation.
More than a hundred days have passed since Russia's invasion of Ukraine, but the magnitude of the shock waves striking nations and homes is just now becoming clear.
Developing countries were already having trouble getting back on their feet. Households used to get $20 for every $20 they used to get before the epidemic, but now they only got $19.
However, rising food and energy prices threaten to further destabilize lives, resulting in suffering and hardship for the most vulnerable.
This is true for all nations, not just the poorest ones. According to one poll, one in every six British homes has used a food bank.
Higher interest rates are being used to reduce inflation, which might exacerbate the worldwide struggle, just as government help to mitigate the pandemic's impact is dwindling.
The World Bank is recommending rapid action, ranging from debt relief to asking countries not to impose food export restrictions.
Instead, they want authorities to demonstrate that they're working together to protect food and energy supplies, calm turbulent markets, and reduce price surges.
Policymakers have already had to deal with a difficult situation.
However, the World Bank warns that if we don't act now, we'll be in for an even longer and more terrible catastrophe.
Today's hardships aren't only about suffering and social instability; they may wreak havoc on people's lives for years.
Ukraine and Russia are the European nations most likely to experience a severe reduction in economic production in 2022, according to the World Bank.
However, it cautioned that the war's and the Covid pandemic's consequences would be far-reaching.
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