The United Nations Conference on Trade and Development (Unctad) has downgraded its global economic growth projection for this year to 2.5%, from its previous estimate of 3.5%, owing to the Ukraine war and changes in macroeconomic policies implemented by various countries in recent months. The ongoing war in Ukraine is likely to reinforce the monetary tightening trend in advanced countries following similar moves that began in late 2021 in several developing countries owing to inflationary pressures, with expenditure cuts also anticipated in upcoming budgets, the entity noted in a new report.
