David Malpass stated, “As we examine the global GDP… it’s difficult right now to see where we can avoid a recession.”
The President of the World Bank warned that the conflict in Ukraine could lead to a global recession.
David Malpass highlighted the role of conflict in driving up energy and food prices.
He stated that Germany’s fourth-largest economy has already been affected by higher energy prices.
He said that the war also caused a shortage of fertilisers, which could lead to worsening economic conditions elsewhere.
He said that “As we examine the global GDP…it’s difficult right now to see the way we avoid a recession,” at an event hosted at the US Chamber of Commerce.
Advertisement
He said, “The thought of energy prices increasing by a factor of two is enough to cause a recession.”
He said that the US, China, and Europe are experiencing slower growth while developing countries are being hit harder by inflation.
China’s economy was particularly hard hit by the coronavirus pandemic. Authorities imposed lockdown restrictions in Shanghai and a pre-existing crisis in real estate.
The impact of conflict prompted the World Bank to reduce its global growth forecasts for 2022 by almost a full percentage point.
According to the United Nations, Russia and Ukraine are major players in the world’s food production. They account for 53% of global trades in sunflower oil and seeds and 27% in wheat.
