World Bank President David Malpass has warned that Russiaʼs invasion of Ukraine could lead to a global recession as food, energy, and fertilizer prices rise.
This was reported by the BBC.
"When we look at world GDP, it is difficult to understand how to avoid a recession. The idea of doubling energy prices can in itself provoke a recession," Malpass said without giving a specific forecast. Last month, the World Bank lowered its forecast for global economic growth this year by almost a percentage point to 3.2%.
Malpass also said that many European countries are still too dependent on Russia for oil and gas. And this is despite the fact that Western countries are pushing for plans to reduce their dependence on Russian energy resources. At the same time, Russiaʼs actions to reduce gas supplies could lead to a "significant slowdown" in the region.
In addition, a series of coronavirus lockdowns in China heightens fears of a slowdown in economic growth. At the same time, developing countries also suffer from a shortage of fertilizers, food, and energy.