The world is paying a high price for Russia’s war of aggression against Ukraine. The high humanitarian cost continues to grow and the global economic outlook has darkened further. This Interim Report focuses on the effects of the war on the world economy and the energy crisis.
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Chile’s economy recovered swiftly from the pandemic on the back of exceptionally strong policy support, which eventually led to a significant overheating of the economy. Inflation has risen amid buoyant private consumption, further aggravated by the Russian aggression on Ukraine. Monetary authorities have acted in a timely and decisive fashion to contain inflation, and the fiscal stimulus is being withdrawn.
© SCStock/Shutterstock.comChile Economic Snapshot
Sound health management and supportive policies helped Korea emerge swiftly from the pandemic. The recovery is set to continue as pandemic-era restrictions on contact-intensive services are shelved, despite the Russia-Ukraine war raising inflation and highlighting the need to increase supply chain resilience. Reducing dependence on fossil fuels can boost resilience, but is also necessary to reach ambitious climate targets.
© Vincent KOENKorea Economic Snapshot
The COVID‑19 crisis has weakened an already fragile economy. South Africa’s growth underperformed during the past decade: GDP per capita was already lower in 2019 than in 2008. Unemployment remains high, at around 35%, and youth unemployment even exceeds 50%. In the meantime, spending pressures are mounting to close the financing gap in health, infrastructure and higher education.
© Kanuman/Shutterstock.comSouth Africa Economic Snapshot
The UK economy recovered from the COVID-19 shock thanks to emergency support measures protecting jobs and incomes and a rapid vaccine rollout, but is slowing amid persisting supply shortages and rising inﬂation. Fiscal policy has to balance gradual tightening with providing well-targeted temporary support to households who are vulnerable to rising costs of living, supporting growth and addressing signiﬁcant investment needs.
© Ian Woolcock/Shutterstock.comUnited Kingdom Economic Snapshot