Russia’s Ukraine Invasion May Trigger Global Recession, Warns World Bank Chief

OB Bureau

Washington: Russia’s invasion of Ukraine could trigger a global recession due to its impact on food, energy and fertilizer prices, World Bank president David Malpass has said.

He was of the opinion that developing nations are likely to be among the worst affected.

“As we look at global GDP it’s hard right now to see how we avoid a recession. The idea of energy prices doubling is enough to trigger a recession by itself,” he was quoted as saying by Reuters.

Malpass, however, did not say when recession may set in.

Malpass said that Ukraine and Russia are likely to see significant contractions, while Europe and the United States are experiencing slower growth. As for China, he felt the sharp slowdown was caused by COVID-19 pandemic, inflation and a real estate crisis.

The World Bank chief is not the only one to issue a warning about increased global risks in the backdrop of three-month war in Ukraine and the COVID pandemic which is into its third year.

The Institute of International Finance (IIF) recently slashed 2022 growth outlook for global output from 4.6 per cent to 2.3 per cent. It pegged growth in US, Japan and European region at 1.9 per cent and China from 5.1 per cent to 3.5 per cent.

“Global recession risk is elevated,” the IIF said.

The possibility of a worldwide recession has also been flagged at the ongoing World Economic Forum in Davos, as inflation is at its highest level in over a decade in the United States, Britain and Europe.

World Bank last month reduced 2022 global growth forecasts from 4.1 per cent to 3.2 per cent because of the impact of Russia’s Ukraine invasion.

As for India, World Bank brought down growth estimates from 8.7 per cent to 8 per cent.

OB Bureau

Recent Posts

70 Dengue Cases Reported In Bhubaneswar So Far This Year

Bhubaneswar: Seventy cases of dengue were reported in Odisha’s capital from January to June this…

July 5, 2022

Doctors Need To Serve Society With Passion, Says Dean Of SUM Hospital In Bhubaneswar

Bhubaneswar: Doctors should serve the society with passion to avoid unsavoury incidents of attacks on…

July 4, 2022

Software Developed To Detect Unauthorized Encroachments On Defence Land

New Delhi: An Artificial Intelligence-based software, which can automatically detect change on ground, including unauthorised…

July 4, 2022

COVID Spread In Bhubaneswar: BMC Issues SOP For Malls & Shopping Complexes

Bhubaneswar: Four days after making use of face masks by people in public places mandatory,…

July 4, 2022

Black Balloons Released Near PM Modi’s Chopper; 4 Congress Workers Arrested

Vijayawada: In a concerning incident, black balloons were released close to Prime Minister Narendra Modi’s…

July 4, 2022

21 Of Over 3,700 Bangladeshi Infiltrators Deported From Odisha Till Date: Minister

Bhubaneswar: Out of over 3,700 Bangladeshi infiltrators identified in Odisha, 21 have been deported to…

July 4, 2022