World Bank warns world at risk of stagflation as European economy slows down

World Bank President David Malpass warned that For the world to be able to produce enough energy without relying on Russia? It may take many years. Since Russia deployed troops to invade Ukraine in February, the world has experienced an energy crisis. As a result, the global economy is at risk of facing a slowdown but high inflation. (Stagflation)

Reuters reported that Malpass said during a speech at Stanford University on Wednesday (Sept. 28) that there was a greater likelihood that the European economy would face a recession. While China’s economic growth is slowing down severely. And US economic output has shrunk in the first half of this year.

“These situations will have a serious impact on developing countries,” Malpass said, suggesting that The impact of global central banks raising interest rates, high inflation. and the slow-growing economy It needs to be addressed through measures at both the macro and micro level. This includes more targeted spending. and dedicating efforts to increase supply

“Economics in developing countries are facing great challenges. This includes sharp increases in food, fertilizer and energy prices. including rising interest rates currency depreciation In addition, developing economies face the dangers of global recession risks. Especially in many countries it is difficult to return to per capita income to pre-COVID-19 levels,” Malpass said.