World Bank boss warns of global recession
May 26, 2022 - The president of the World Bank warns that Russia’s invasion of Ukraine combined with slowdown effects from China’s pandemic lockdowns – particularly those in Shanghai – could trigger a global recession.
The president of the World Bank warns that Russia’s invasion of Ukraine could cause a global recession as food, energy and fertiliser prices rise, adding that many European countries are also still too dependent on Russian oil and gas.
David Malpass says that reduced growth expectations for China due to a series of coronavirus lockdowns in major cities - including the financial, manufacturing and shipping hub of Shanghai – is adding to concerns of an economic slowdown.
His comments are the latest warnings over fears that the world economy may be set to contract, most acutely in Europe, and the UK, as a result of their proximity to the Russian energy price shock.
Last month, the World Bank cut its global economic growth forecast for this year by almost a full percentage point, to 3.2%.