President of the World Bank David Malpass has warned of a global recession as the price of food, energy and fertiliser jump.
Malpass told a US business leaders event yesterday that it is difficult to see how the world can avoid a recession, mainly as a result of Russia’s invasion of Ukraine
He also said that a series of coronavirus lockdowns in China is adding to concerns.
His comments are the latest warning over the rising risk that the world economy may be set to contract.
Without giving a specific forecast, Malpass says a look at the global GDP paints a difficult picture … adding that it’s hard right now to see how a recession can be avoided.
He says the idea of energy prices doubling is enough to trigger a recession by itself.
Last month, the World Bank cut its global economic growth forecast for this year by almost a full percentage point, to 3.2%..
Malpass also said that many European countries were still too dependent on Russia for oil and gas.
That’s even as Western nations push ahead with plans to reduce their dependence on Russian energy.
He says that moves by Russia to cut gas supplies could cause a “substantial slowdown” in the region.
He said higher energy prices were already weighing on Germany, which is the biggest economy in Europe and the fourth largest in the world.
Developing countries are also being affected by shortages of fertiliser, food and energy