New Delhi: The ongoing conflict in Ukraine is set to lower global growth prospects and increase inflationary pressures across the world, according to global advisory firm KPMG’s latest Global Economic Outlook.
The bi-annual report provides economic forecasts and analysis from the global organization’s team of economists in territories and regions throughout the world.
In the report, it warns that progress on global issues including public health and climate change has slowed as political and business leaders grapple with the broad implications of the war in Ukraine.
“The global economy emerged from the Covid-19 recession with higher public debt and as central banks raise interest rates, the servicing cost of sovereign debt also increases, making it particularly challenging for emerging countries whose debt is denominated in an appreciating US dollar,” it said.
With policymakers and many businesses still reeling from the consequences of the pandemic, they are less ready to counter another significant economic shock, it opined.
On the global economic outlook, it said that the next two years will depend on how the conflict between Russia and Ukraine evolves.
On the Indian economy, the report said it is expected to continue its positive growth trajectory, however, recent geopolitical developments have hurted domestic stock indices and created volatility in crude oil prices and exchange rates.