World Bank president David Malpass. Photo: Nicholas Kamm/AFP via Getty Images
The World Bank is warning the Russian military invasion of Ukraine may cause a global recession as food and energy prices rise, per multiple reports.
What he's saying: "As we look at the global GDP ... it's hard right now to see how we avoid a recession," World Bank president David Malpass said at a U.S. Chamber of Commerce event, according to Sky News. "The idea of energy prices doubling is enough to trigger a recession by itself."
The big picture: The World Bank last month cut its global growth forecast for 2022 by almost a full percentage point, to 3.2% from 4.1% due to the pandemic inflation and "policy uncertainty."
- Malpass said Chinese officials' lockdowns in key industrial hubs such as Shanghai had added to the global uncertainty, the BBC reports.
- "The waves of COVID-caused lockdowns ... further reduced growth expectations for China," Malpass said.
Meanwhile, developing countries have been affected by shortages in fertilizer, food stocks and energy supplies, Malpass said, according to Reuters.