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- World Bank President Malpass: Increased likelihood of a recession in Europe
World Bank President Malpass: Increased likelihood of a recession in Europe
World Bank President David Malpass says it may take years for global energy production to diversify away from Russia, prolonging the risk of stagflation.
Key notes
Says pressing danger for the developing world is that a sharp slowdown in global growth deepens into a global recession.
Says increased likelihood of a recession in Europe.
Says crisis facing development is intensifying, and more spending on education and health preparedness is urgently needed.
Says debt relief from bilateral and commercial creditors will also play a key role.
Says weathering 'this perfect storm' and undoing reversals in development requires new macro- and microeconomic approaches.
Meanwhile, global markets took a breather from the ferocious selling that has gripped them since the UK government announced its drastic fiscal plans and following the Federal Reserve that has embarked on its most aggressive path of interest-rate hikes since the 1980s. The US dollar caved and the euro rallied from 20-year lows.
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