The World Bank warns about world economic recession.

World Bank President David Malpass has warned that a period of low growth and high inflation could drag on for years because of Russia’s invasion of Ukraine, as markets transition and wean off Russian energy. According to Malpass, the likelihood of a European recession is growing, while China’s growth is slowing sharply and US output contracted in the first half of the year. These developments will have serious consequences for developing countries. Overcoming the current perfect storm of rising interest rates, high inflation, and slowing growth require new macroeconomic and microeconomic approaches. “The biggest risk for developing countries is that a sharp slowdown in global growth will turn into a global recession,” Malpass said. He urged countries to look for alternative ways to reduce inflation other than by raising interest rates.