War in Ukraine could trigger global recession, says World Bank

26 May, 01:00 PM
World Bank President David Malpass (Photo:REUTERS/Jim Young)

World Bank President David Malpass (Photo:REUTERS/Jim Young)

World Bank President David Malpass said that Russia’s war of aggression against Ukraine is causing food and energy price rises and fertilizer shortages, contributing to the risk of a global recession, Reuters reported on May 25.

According to Malpass, Germany’s economy has already slowed down considerably, due to energy price hikes. Shortages of agricultural fertilizers could exacerbate economic problems in other countries.

“As we look at the global GDP ... it's hard right now to see how we avoid a recession,” said Malpass.

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Ukrainian and Russian economies are expected to contract sharply, while Europe, China, and the United States will face sluggish growth rates, Malpass added.

The official said that China’s stalling economic growth can be explained by another COVID-19 surge, high inflation, and the pre-existing real estate crisis.

Developing countries will be hit the hardest by soaring food and energy prices, Malpass warned.

Earlier, Goldman Sachs estimated the likelihood of the United States sliding into recession in the next two years at 35%.

Russia's war against Ukraine enters the fourth month.

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