Arab Press

بالشعب و للشعب
Sunday, Mar 08, 2026

World Bank boss warns over global recession

World Bank boss warns over global recession

The head of the World Bank has warned that Russia's invasion of Ukraine could cause a global recession as the price of food, energy and fertiliser jump.
David Malpass told a US business event on Wednesday that it is difficult to "see how we avoid a recession".

He also said that a series of coronavirus lockdowns in China is adding to concerns about a slowdown.

His comments are the latest warning over the rising risk that the world economy may be set to contract.

"As we look at the global GDP... it's hard right now to see how we avoid a recession," Mr Malpass said, without giving a specific forecast.

"The idea of energy prices doubling is enough to trigger a recession by itself," he added.

Last month, the World Bank cut its global economic growth forecast for this year by almost a full percentage point, to 3.2%.

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.

It helps businesses to judge when to expand and recruit more workers or invest less and cut their workforces.

Governments also use it to guide decisions on everything from tax to spending. It is a key gauge, along with inflation, for central banks when considering whether or not to raise or lower interest rates.

Mr Malpass also said that many European countries were still too dependent on Russia for oil and gas.

That's even as Western nations push ahead with plans to reduce their dependence on Russian energy.

He also told a virtual event organised by the US Chamber of Commerce that moves by Russia to cut gas supplies could cause a "substantial slowdown" in the region.

He said higher energy prices were already weighing on Germany, which is the biggest economy in Europe and the fourth largest in the world.

Developing countries are also being affected by shortages of fertiliser, food and energy, Mr Malpass said.

Mr Malpass also raised concerns about lockdowns in some of China's major cities - including the financial, manufacturing and shipping hub of Shanghai - which he said are "still having ramifications or slowdown impacts on the world".

"China was already going through some contraction of real estate, so the forecast of China's growth before Russia's invasion had already softened substantially for 2022," he said.

"Then the waves of Covid caused lockdowns which further reduced growth expectations for China," he added.

Also on Wednesday, China's premier Li Keqiang said the world's 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.

He also called for more action by officials to restart factories after lockdowns.

"Progress is not satisfactory," Mr Li said. "Some provinces are reporting that only 30% of businesses have reopened… the ratio must be raised to 80% within a short period of time."

Full or partial lockdowns were imposed in dozens of Chinese cities in March and April, including a long shutdown of Shanghai.

The measures have led to a sharp slowdown in economic activity across the country.

In recent weeks, official figures have shown that large parts of economy have been impacted, from manufacturers to retailers.
Comments

Oh ya 4 year ago
And not a word mentioned about the central banks printing huge amounts of money. Lets just blame Russia for everything. And the MSM prints these lies.

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Saudi Arabia Warns Iran While Expanding Diplomatic Efforts to Contain Widening Middle East War
Iran’s President Rejects U.S. Surrender Demand as Drone and Missile Strikes Hit Gulf States
Saudi Arabia Intercepts Drone Swarm Targeting Strategic Shaybah Oil Field
Pakistan Faces Growing Pressure to Balance Ties With Iran and Saudi Arabia as Regional War Intensifies
Middle East Conflict Tests Mohammed bin Salman’s Vision to Transform Saudi Arabia Into a Global Hub
Proposed U.S.–Saudi Nuclear Deal Could Ease Traditional Nonproliferation Requirements
Iran Claims Strike on U.S.-Linked Oil Tanker Near Saudi Waters as Maritime Tensions Escalate
Saudi Arabia Says Air Defences Destroyed 23 Drones and Three Missiles Amid Escalating Regional Conflict
Saudi Arabia Warns Iran Against ‘Miscalculation’ After Missile and Drone Attacks Across Gulf
Iranian Missiles Intercepted Across Gulf as Air Defences Activate in Saudi Arabia, Qatar, UAE and Bahrain
U.S. Justice Department Pursues Criminal Cases Against Cuban Officials in New Legal Push
Abrupt Cancellation of U.S. Army Exercise Sparks Speculation Over Possible Middle East Deployment
Saudi Arabia Led OPEC Output Surge Ahead of Iran Strikes, Survey Finds
Cristiano Ronaldo Travels to Spain for Hamstring Treatment After Injury in Saudi Pro League Match
Saudi Aramco Reroutes Oil to Red Sea as Strait of Hormuz Disruptions Hit Gulf Exports
Saudi Arabia Presses Ahead With Economic Diversification Despite Fiscal and External Deficits
Middle East Conflict Puts Bahrain and Saudi Arabian Formula One Races at Risk
Iran Targets Israeli Diplomatic Site in Bahrain and US Air Base in Qatar as Regional Conflict Expands
Saudi Arabia Intercepts Three Ballistic Missiles Targeting Prince Sultan Air Base
Iran Launches Fresh Missile and Drone Attacks Across Middle East as Regional War Intensifies
Saudi Arabia Opens Direct Communication Channel With Iran in Bid to Prevent Wider Regional War
Saudi Arabia Maintains Strong Fiscal Position Despite Global Uncertainty, Finance Ministry Says
Saudi Arabia Considers Response After Iranian Drone Strike Hits Major Northern Oil Refinery
Saudi Carrier Flynas Plans Limited Flight Resumption to Dubai Amid Regional Tensions
Saudi Arabia and UAE Pledge Close Coordination to Secure Oil Supplies for Japan
Middle East Conflict Casts Doubt Over Bahrain and Saudi Arabian Formula One Races
Iran Rejects Claims of Attacks on Türkiye, Azerbaijan, Saudi Arabia and Oman
Saudi Arabia Condemns Iranian Strikes Targeting Türkiye and Azerbaijan
Saudi Pro League Orders Clubs to Continue Matches Despite Escalating Regional Conflict
Saudi Arabia Scrambles to Redirect Oil Exports as Gulf Storage Nears Capacity
U.S. Embassy in Riyadh Issues Emergency Security Alert After Drone Strike and Escalating Regional Threats
Iran Expresses Gratitude to Saudi Arabia for Closing Airspace During Escalating Conflict
Saudi Arabia Fears Iranian Strikes Could Target Senior Leaders as Regional War Escalates
Iran Says Its Strikes Target Only U.S. Military Assets and Denies Attacking Saudi Arabia
Drone Strike Hits U.S. Embassy in Riyadh as Middle East Conflict Escalates
Tom Brady’s Saudi Flag Football Event May Shift to U.S. as Middle East Conflict Disrupts Plans
Iran War Strikes Saudi Arabia at a Critical Moment for Its Economic Transformation
Saudi Cabinet Declares Kingdom Will Take All Necessary Measures to Defend National Security
United States Urges Citizens to Leave Fourteen Middle Eastern Countries as Iran War Escalates
Saudi Aramco’s Ras Tanura Refinery Targeted Again in Second Drone Attack Within Two Days
Saudi Pro League Orders Clubs to Continue Fixtures Despite Rising Middle East Conflict
Trump Pursues Major Civil Nuclear Agreement With Saudi Arabia Amid Regional Turmoil
Mass Drone Attacks Strike Gulf States as Iran Conflict Spreads Across Region
No Verified Confirmation of Ronaldo Departure Linked to Iran Conflict or AFC Suspension
No Verified Evidence of Israeli Intelligence Arrests in Qatar or Saudi Arabia
Drone Attack Forces Temporary Shutdown of Saudi Arabia’s Largest Oil Refinery
Israel Intensifies Air Campaign in Tehran as Iran Expands Regional Retaliation
Iranian Strikes Escalate Middle East Conflict, Drawing Saudi Arabia Closer to Wider War
No Verified Confirmation of Drone Strike on King Fahd Causeway Amid Regional Tensions
No Verified Evidence Saudi Crown Prince Is Seeking to Weaken Israel Amid Regional Tensions
×