The World Bank put out a statement saying that less developed countries in the world face a major recession as a result of the war in Ukraine, as well as the consequences of the COVID-19 lockdowns as the cost of energy and food continue to rise globally.
David Malpass, the President of the World Bank says that there is also a major risk of high inflation and small growth, which is also called 'stagflation'.
Malpass said that "The war in Ukraine, lockdowns in China, supply-chain disruptions, and the risk of stagflation are hammering growth. For many countries, the recession will be hard to avoid".
"Subdued growth will likely persist throughout the decade because of weak investment in most of the world. With inflation now running at multi-decade highs in many countries and supply expected to grow slowly, there is a risk that inflation will remain higher for longer".
Although the countries that will be immediately affected in 2022, according to a World Bank forecast are Russia and Ukraine, it warned of long-term effects [from the war and COVID lockdowns] that will likely have much wider effects.
Malpass said, "Even if a global recession is averted, the pain of stagflation could persist for several years - unless major supply increases are set in motion".
David Malpass, the President of the World Bank says that there is also a major risk of high inflation and small growth, which is also called 'stagflation'.
Malpass said that "The war in Ukraine, lockdowns in China, supply-chain disruptions, and the risk of stagflation are hammering growth. For many countries, the recession will be hard to avoid".
"Subdued growth will likely persist throughout the decade because of weak investment in most of the world. With inflation now running at multi-decade highs in many countries and supply expected to grow slowly, there is a risk that inflation will remain higher for longer".
Although the countries that will be immediately affected in 2022, according to a World Bank forecast are Russia and Ukraine, it warned of long-term effects [from the war and COVID lockdowns] that will likely have much wider effects.
Malpass said, "Even if a global recession is averted, the pain of stagflation could persist for several years - unless major supply increases are set in motion".