World Bank Group President David Malpass stated that the sharp slowdown in global growth could deepen into a global recession, warning that, "under current policies, global energy production may take years to diversify away from Russia, prolonging stagflation risk," APA reports citing Tele Trader.
He added that the World Bank has seen a 4% decline in global median income for the first time since it started recording it in 1990.
Malpass stressed that the bank revised down China's growth in 2022 from 5% forecast in April to 2.8%. Meanwhile, the European Union is facing a "sudden spike in energy prices" due to the war in Ukraine and the market rigidities. "The weakness of the euro and high inflation increase the likelihood of a European recession and further constrain the Eurozone's longer-term growth outlook," he cautioned.