The president of the World Bank (WB), David Malpass, said that he sees a likely scenario of recession in Europe, considering that the world may take years to find energy alternatives to Russia.
Malpass defined this Wednesday the global macroeconomic situation as a “perfect storm”, capable of leading to a situation of ‘stagflation’, that is, high inflation and low or no economic growth.
The president of the World Bank made these predictions in a speech at Stanford University, in the United States, entitled “The crisis confronts development” and presented by the international financial institution as a prelude to the autumn meeting that will begin in two weeks.
As of October 10, the World Bank and the International Monetary Fund (IMF) will hold their traditional annual meeting in Washington, in which the global growth forecasts and detailed by country will be updated.
Under the default nomination model, the US chooses the president of the World Bank, while Europe decides who heads the IMF.
A more severe shortage of energy, especially natural gas, could raise eurozone inflation by 1.5 percentage points and reduce growth in Europe by more than 1.2 percentage points, triggering a recession, the World Bank warned on Monday. Organization for Economic Cooperation and Development. (OECD).
Source: Observadora
