War in Ukraine May Trigger Global Recession, David Malpass

World Bank Governor David Malpass said Russia- Ukraine war could cause a global recession due to its impact on food, energy, and fertilizer prices, hitting developing countries the hardest.

He said that Ukraine and Russia are likely to see a significant contraction, but growth is slowing in Europe and the United States. For China, he said, the relatively sharp slowdown was due to covid, inflation, and the existing housing crisis.

The World Bank Chief's warning about the recently triggered war in Ukraine has been fueled by the Covid-19 pandemic and related restrictions and is one of the rising global risks in its third year.

The day before Malpas' warning, the Institute of International Finance lowered its 2022 growth outlook for global manufacturing from 4.6% to 2.3%. Due to the impact of the Russia-Ukraine war, the World Bank reduced 2022 global growth forecasts from 4.1% to 3.2% last month.

The risk of a global recession has also been discussed at the World Economic Forum in Davos, where there are concerns about the highest levels of inflation in generations in major economies such as the United States, the United Kingdom, and Europe.

China is a major driver of global growth but has been hit hard by the "Zero Covid" policy, with manufacturing hubs in Shenzhen and Shanghai severely locked and agricultural hubs devastated.