"Ukraine war: World Bank boss warns over global recession"

" \n Ukraine war: World Bank boss warns over global recession \n \n\n \n The head of the\u00a0World Bank\u00a0has warned that \u00a0Russia\u2019s invasion of Ukraine \u00a0could cause a global recession as the price of food, energy and fertiliser jump. \n \n\n \n David Malpass told a US business event on Wednesday that it is difficult to \u201csee how we avoid a recession\u201d. \n \n\n \n He also said a series of coronavirus lockdowns in\u00a0China\u00a0are adding to concerns about a slowdown. \n \n\n \n His comments are the latest warning over the rising risk that the world economy may be set to contract. \n \n\n \n \u201cAs we look at the global GDP\u2026 it\u2019s hard right now to see how we avoid a recession,\u201d Mr Malpass said, without giving a specific forecast. \n \n\n \n \u201cThe idea of energy prices doubling is enough to trigger a recession by itself,\u201d he added. \n \n\n \n Last month, the World Bank cut its global economic growth forecast for this year by almost a full percentage point, to 3.2%. \n \n\n \n GDP, or Gross Domestic Product, is a measure of economic growth. It is one of the most important ways of measuring how well, or badly, an economy is performing and is closely watched by economists and central banks. \n \n\n \n It helps businesses to judge when to expand and recruit more workers or invest less and cut their workforces. \n \n\n \n Governments also use it to guide decisions on everything from tax and spending. It is a key gauge, along with inflation, for central banks when considering whether or not to raise or lower interest rates. \n \n\n \n Mr Malpass also said that many European countries were still too dependent on Russia for oil and gas. \n \n\n \n That\u2019s even as Western nations push ahead with\u00a0plans to reduce their dependence on Russian energy. \n \n\n \n He also told a virtual event organised by the US Chamber of Commerce that moves by Russia to cut gas supplies could cause a \u201csubstantial slowdown\u201d in the region. \n \n\n \n He said higher energy prices were already weighing on Germany, which is the biggest economy in Europe and the fourth largest in the world. \n \n\n \n Developing countries are also being affected by shortages of fertiliser, food and energy, Mr Malpass said. \n \n\n \n Mr Malpass also raised concerns about lockdowns in some of China\u2019s major cities \u2013 including the financial, manufacturing and shipping hub of Shanghai \u2013 which he said are \u201cstill having ramifications or slowdown impacts on the world\u201d. \n \n\n \n \u201cChina was already going through some contraction of real estate, so the forecast of China\u2019s growth before Russia\u2019s invasion had already softened substantially for 2022,\u201d he said. \n \n\n \n \u201cThen the waves of Covid caused lockdowns which further reduced growth expectations for China,\u201d he added. \n \n\n \n Also on Wednesday, China\u2019s premier Li Keqiang said the world\u2019s second largest economy had been hit harder by the latest round of lockdowns than it had been at the start of the pandemic in 2020. \n \n\n \n He also called for more action by officials to restart factories after lockdowns. \n \n\n \n \u201cProgress is not satisfactory,\u201d Mr Li said. \u201cSome provinces are reporting that only 30% of businesses have reopened\u2026 the ratio must be raised to 80% within a short period of time.\u201d \n \n\n \n Full or partial lockdowns were imposed in dozens of Chinese cities in March and April, including a long shutdown of Shanghai. \n \n\n \n The measures have led to a sharp slowdown in economic activity across the country. \n "

"Ukraine war: World Bank boss warns over global recession"

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