Thu 26 May 2022:
World Bank President David Malpass on Wednesday suggested that Russia’s war in Ukraine and its impact on food and energy prices, as well as the availability of fertilizer, could trigger a global recession.
Malpass told an event hosted by the U.S. Chamber of Commerce that Germany, the world’s fourth largest economy, has already seen a substantial economic slowdown due to higher energy prices, and said limited access to fertilizer could worsen conditions elsewhere
“As we look at the global GDP … it’s hard right now to see how we avoid a recession,” Malpass said.
The World Bank last month cut its global growth forecast for 2022 by almost a full percentage point, to 3.2% from 4.1% due to the pandemic inflation and “policy uncertainty.”
Malpass said Chinese officials’ lockdowns in key industrial hubs such as Shanghai had added to the global uncertainty, the BBC reports.
“The waves of COVID-caused lockdowns which further reduced growth expectations for China,” Malpass said.
Meanwhile, developing countries were being impacted by shortages in fertilizer, food stocks and energy supplies, Malpass said, according to Reuters.
SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES
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