The World Bank warns about global economy that it may face a danger of recession which is not seen since the 1970s.
David Malpass the bank’s president said this is a crucial stage as rising inflation and slow growth are at the same time.
The global growth forecast for 2022 was lowered to 2.9% by the global body on Monday. This growth rate is lower than its projection of 4.1% in January.
Malpass also said that even if a global recession is precluded, the trauma of recession may long for many years.
The growth rate of developing economies seems to fall as well this year from 6.6% in 2021 to 3.4% in 2022.
Russia Ukraine war is also becoming a serious factor in increasing commodity prices. The sharp upward movement in the prices may bring extreme poverty in developing countries along with food insecurity.
Global CPI is more than the targets of the World Bank in most countries which is assumed as too high.
