Beautiful Virgin Islands

Saturday, Feb 22, 2025

World Bank boss warns over global recession

World Bank boss 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.
David Malpass told a US business event on Wednesday that it is difficult to "see how we avoid a recession".

He also said that a series of coronavirus lockdowns in China is adding to concerns about a slowdown.

His comments are the latest warning over the rising risk that the world economy may be set to contract.

"As we look at the global GDP... it's hard right now to see how we avoid a recession," Mr Malpass said, without giving a specific forecast.

"The idea of energy prices doubling is enough to trigger a recession by itself," he added.

Last month, the World Bank cut its global economic growth forecast for this year by almost a full percentage point, to 3.2%.

GDP, or Gross Domestic Product, is a measure of economic growth. It is one of the most important ways of measuring how well, or badly, an economy is performing and is closely watched by economists and central banks.

It helps businesses to judge when to expand and recruit more workers or invest less and cut their workforces.

Governments also use it to guide decisions on everything from tax to spending. It is a key gauge, along with inflation, for central banks when considering whether or not to raise or lower interest rates.

Mr Malpass also said that many European countries were still too dependent on Russia for oil and gas.

That's even as Western nations push ahead with plans to reduce their dependence on Russian energy.

He also told a virtual event organised by the US Chamber of Commerce that moves by Russia to cut gas supplies could cause a "substantial slowdown" in the region.

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.

He also called for more action by officials to restart factories after lockdowns.

"Progress is not satisfactory," Mr Li said. "Some provinces are reporting that only 30% of businesses have reopened… the ratio must be raised to 80% within a short period of time."

Full or partial lockdowns were imposed in dozens of Chinese cities in March and April, including a long shutdown of Shanghai.

The measures have led to a sharp slowdown in economic activity across the country.

In recent weeks, official figures have shown that large parts of economy have been impacted, from manufacturers to retailers.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Good News: Senate Confirms Kash Patel as FBI Director
Officials from the U.S. and Hungary Engage in Talks on Economic Collaboration and Sanctions Strategy
James Bond Franchise Transitions to Amazon MGM Studios
Technology Giants Ramp Up Lobbying Initiatives Against Strict EU Regulations
Alibaba Exceeds Quarterly Projections Fueled by Growth in Cloud and AI
Tequila Sector Faces Surplus Crisis as Agave Prices Dive Sharply
Residents of Flintshire Mobile Home Park Grapple with Maintenance Issues and Uncertain Future
Ronan Keating Criticizes Irish Justice System Following Fatal Crash Involving His Brother
Gordon Ramsay's Lucky Cat Restaurant Faces Unprecedented Theft
Israeli Family Mourns Loss of Peace Advocate Oded Lifschitz as Body Returned from Gaza
Former UK Defense Chief Calls for Enhanced European Support for Ukraine
Pope Francis Admitted to Hospital in Rome Amid Rising Succession Speculation
Senate Republican Leader Mitch McConnell, at the age of 83, Declares His Retirement.
Whistleblower Reveals Whitehall’s Focus on Kabul Animal Airlift Amid Crisis
Politicians Who Deliberately Lie Could Face Removal from Office in Wales
Scottish Labour Faces Challenges Ahead of 2026 Holyrood Elections
Leftwing Activists Less Likely to Work with Political Rivals, Study Finds
Boris Johnson to Host 'An Evening with Boris Johnson' at Edinburgh's Usher Hall
Planned Change in British Citizenship Rules Faces First Legal Challenge
Northumberland Postal Worker Sentenced for Sexual Assaults During Deliveries
British Journalist Missing in Brazil for 11 Days
Tesco Fixes Website Glitch That Disrupted Online Grocery Orders
Amnesty International Critiques UK's Predictive Policing Practices
Burglar Jailed After Falling into Home-Made Trap in Blyth
Sellafield Nuclear Site Exits Special Measures for Physical Security Amid Ongoing Cybersecurity Concerns
Avian Influenza Impact on Seals in Norfolk: Four Deaths Confirmed
First Arrest Under Scotland's Abortion Clinic Buffer Zone Law Amidst International Controversy
Meghan Markle Rebrands Lifestyle Venture as 'As Ever' Ahead of Netflix Series Launch
Inter-Island Ferry Services Between Guernsey and Jersey Set to Expand
Significant Proportion of Cancer Patients in England and Wales Not Receiving Recommended Treatments
Final Consultation Launched for Vyrnwy Frankton Power Line Project
Drug Misuse Deaths in Scotland Rise by 12% in 2023
Failed £100 Million Cocaine Smuggling Operation in the Scottish Highlands
Central Cee Equals MOBO Awards Record; Bashy and Ayra Starr Among Top Honorees
EastEnders: Four Decades of Challenging Social Norms
Jonathan Bailey Channels 'Succession' in Bold Richard II Performance
Northern Ireland's First Astronaut Engages in Rigorous Spacewalk Training
Former Postman Sentenced for Series of Sexual Offences in Northumberland
Record Surge in Anti-Muslim Hate Crimes Across the UK in 2024
Omagh Bombing Inquiry Concludes Commemorative Hearings with Survivor Testimonies
UK Government Introduces 'Ronan's Law' to Combat Online Knife Sales to Minors
Metal Detectorists Unearth 15th-Century Coin Hoard in Scottish Borders
Woman Charged in 1978 Death of Five-Year-Old Girl in South London
Expanding Sinkhole in Godstone, Surrey, Forces Evacuations and Road Closures
Bangor University Announces Plans to Cut 200 Jobs Amid £15 Million Savings Target
British Journalist Charlotte Peet Reported Missing in Brazil
UK Inflation Rises to 3% in January Amid Higher Food Prices and School Fees
Starmer Defends Zelensky Amidst Trump's 'Dictator' Allegation
Zelensky Calls on World Leaders to Back Peace Efforts in Light of Strains with Trump
UK Prime minister, Mr. Keir Starmer, has stated that any peace agreement aimed at ending the conflict in Ukraine "MUST" include a US security guarantee to deter Russian aggression
×