World Bank’s chief economist warned of a possible global recession if food, gasoline, and fertilizer prices continue to rise due to the ongoing conflict between Russia and Ukraine.
David Malpass, quoted in a report by BBC during an event of the US Chamber of Commerce event, said it’s tough to “see how we avoid a recession”.
The conflict in Ukraine perpetrated by Russia has pushed up food and energy prices.
Malpass mentioned the situation of Germany’s economy where he said it has already slowed significantly due to higher energy prices.
The World Bank president also mentioned a fertilizer deficit, which could affect economic situations overseas.
According to Malpass, Europe, China, and the United States are seeing slower development, while emerging countries are being impacted even harder by inflation.
The World Bank lowered its global economic growth prediction for this year by nearly a full percentage point to 3.2 percent last month.
Last week, the World Bank announced its measures of up to $30 billion in existing and new projects in areas such as agriculture, nutrition, social protection, water, and irrigation.
The World Bank’s financing will include efforts to encourage food and fertilizer production, enhance food systems, facilitate greater trade, and support vulnerable households and producers.
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