The global economy will expand more slowly than predicted three months ago, according to Reuters polls of over 500 economists, who said higher commodity prices and an escalation in the Russia-Ukraine war could prompt another downgrade.
Already under pressure from monetary tightening as central banks try to stem rising inflation, global economic output was dealt a body blow when Russia invaded Ukraine on Feb. 24, sending commodity prices through the roof and triggering waves of economic sanctions.
When asked to name the biggest two downside risks to the global economy this year, the top picks of roughly 200 respondents were persistently higher commodity prices and a further escalation in the Russia-Ukraine war.