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Ukraine’s war could trigger a global recession, warns World Bank chief David Malpass, who underscores the difficulties created by rising food and energy prices.
“Hard to see how recession can be avoided“, He stated in a meeting with businesses in the United States, where he also expressed concern about the impact of increased isolation measures in China on the economic situation. His comments, says the BBC, constitute the latest warning that the world economy may shrink.
“As we look at gross domestic product, GDP, it is difficult to see reversal of the recession“Last month, the World Bank cut its growth forecast for this year to 3.2 percent,” Malpass said, without elaborating. Malpass underlined that many European countries are still highly 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 added that developing countries are also facing food and energy shortages.
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