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World Bank leader David Malpass has warned that Russia’s war in Ukraine could trigger a global recession following rising food and energy prices.
He said in a meeting with businesses in the United States that it is difficult to “find ways to avoid a recession.”
According to him, several series of isolation measures in China are increasing concerns about the economic situation.
His comments constitute the latest warning that the world economy may shrink.
“As we look at gross domestic product (GDP). It is difficult to see reversals of the recession,” Malpass said, without elaborating.
“Just the idea of doubling energy prices is enough to spur the recession,” he added.
Last month, the World Bank cut its growth forecast for this year to 3.2 percent.
Gross domestic product (GDP) is a measure of economic growth and one of the most important ways to measure how well or badly an economy is performing, and is closely monitored by economists and banks.
GDP also helps businesses estimate when to expand, recruit more workers, or invest less and reduce the workforce.
Governments also use GDP to make decisions about everything from taxes to spending, while helping banks decide when to raise or lower interest rates.
Malpass has said many European countries are still heavily dependent on Russian oil and gas.
He has made these statements, despite the fact that some Western countries have made plans to reduce their dependence on Russian energy.
According to the head of the World Bank, if Russia cuts off gas supplies, this could cause a “significant slowdown” in the region’s economy.
He said high energy prices were already weighing on Germany, which has the largest economy in Europe and the fourth largest in the world.
Malpass has said that developing countries are also facing food and energy shortages
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