World Bank chief warns of global recession
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World Bank chief warns of global recession

World Bank chief warns of global recession

World Bank chief warns over global recession The head of the World Bank has warned that Russia’s invasion of Ukraine could cause a global recession as the price of food, energy and fertiliser jump.


He also said that a series of coronavirus lockdowns in China is adding to concerns about a slowdown. Last month, the World Bank cut its global economic growth forecast for this year by almost a full percentage point, to 3.2%. Mr Malpass also said that many European countries were still too dependent on Russia for oil and gas.


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, Mr Malpass said. Mr Malpass also raised concerns about lockdowns in some of China’s major cities - including the financial, manufacturing and shipping hub of Shanghai - which he said are “still having ramifications or slowdown impacts on the world”.


“China was already going through some contraction of real estate, so the forecast of China’s growth before Russia’s invasion had already softened substantially for 2022,” he said. “Then the waves of Covid caused lockdowns which further reduced growth expectations for China,” he added.


Also on Wednesday, China’s premier Li Keqiang said the world’s second largest economy had been hit harder by the latest round of lockdowns than it had been at the start of the pandemic in 2020.

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