America
Russia-Ukraine war could cause global recession: World Bank chief
Washington, May 26
David Malpass, chief of the World Bank. has warned that Russia's ongoing invasion of Ukraine could cause a global recession as the price of food, energy and fertiliser jump.
He made the remarks while addressing a US business event on Wednesday, the BBC reported.
"As we look at the 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 said in the latest warning over the rising risk that the world economy may be set to contract.
Last month, the World Bank cut its global economic growth forecast for this year by almost a full percentage point, to 3.2 per cent.
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, the BBC reported.
Developing countries are also being affected by shortages of fertiliser, food and energy, the World Bank head added.
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."
14 hours ago
IOCUSA Welcomes AICC directive to freeze KPCC appointments of OICC posts
14 hours ago
The Third Eye: A new Cold War with a difference
1 day ago
Indian Americans caution US university on demand to display 'flag of Kashmir'
1 day ago
Sadiq Khan re-elected as London Mayor despite criticism over rising crime rate
1 day ago
Hundred million dollars to support Amritsar startups pledged by Indian-Americans
1 day ago
Sikh activist's murder leads to three arrests in Canada
1 day ago
Members of Congress from Indian-American communities send best wishes during AANHPI Heritage Month
1 day ago
Rutgers University faces criticism from GOPIO over its policy of displaying the separatist Kashmiri flag on campus.
1 day ago
Young child and elderly Indian couple killed in tragic Canadian collision
1 day ago
The foreign minister of India has spoken out against Biden's "xenophobia" statement.
1 day ago
UNGA president invokes Mahatma Gandhi to call for protecting journalists
1 day ago
CMFRI holds awareness campaign on climate change for fishing communities
1 day ago
President Murmu reaches Shimla for five-day visit