The World Bank has warned that countries around the world are facing recession as the Ukraine war hits economies already rocked by the Covid pandemic.
He warned in the World Bank’s Global Economic Prospect Report for June that the danger of stagflation was “considerable”.
Less developed countries in Europe and East Asia face a “major recession”, it said.
The risk of high inflation and low growth – so-called “stagflation” – is also higher, World Bank President David Malpass said.
Energy and food bills have been rising around the world.
“The war in Ukraine, lockdowns in China, supply-chain disruptions, and the risk of stagflation are hammering growth. For many countries, the recession will be hard to avoid,” Mr. Malpass said.