The world is in danger of a global recession due to the conflict in Ukraine

Mr. David Malpass pointed out the impact of conflict in Ukraine in driving up food and energy prices.

The World Bank President said that the German economy, the world’s fourth largest economy, has slowed down significantly due to high energy prices.

The war in Ukraine has also led to fertilizer shortages, which could worsen economic conditions elsewhere.

“When we look at global GDP, it’s hard to see how we’re avoiding economic depression“The risk of a doubling in energy prices is enough to trigger a recession,” said David Malpass at an event hosted by the American Chamber of Commerce.

The world is facing a recession due to the impact of the war in Ukraine. (Photo: Sky News)

Europe, China and the US are seeing slower growth rates, while developing countries are hit harder by the situation. inflationary.

China’s economy has been hit particularly hard by the mounting pressures of the COVID-19 pandemic, as Chinese authorities imposed restrictions, shutdowns in Shanghai, as well as a financial crisis. real estate happened before.

The World Bank cut its global growth forecast for 2022 by almost a percentage point in April, from 4.1% to 3.2%, citing the impact of the conflict.

Ukraine and Russia are the world’s major food producers, accounting for 53 percent of global trade in sunflower oil and seeds, and 27 percent in wheat, according to the United Nations.

In Africa, 25 countries import more than a third of their wheat needs from Ukraine and Russia.

Russia and Ukraine export 28% of fertilizers made from nitrogen and phosphorus, as well as potassium.

Ukraine has been struggling to get goods out of the country due to the conflict, while Russia’s energy exports have been affected by sanctions.

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