London, IANS, The World Bank has said that the global economy recovering from the effects of the Corona epidemic has been hit double by the Russia-Ukraine War. Due to this, the fear of economic recession has deepened in many countries. News agency IANS quoted a BBC report as saying that not only Europe but East Asia will also be affected by the effects of the Russia-Ukraine War. The World Bank has warned that many countries in Europe and East Asia could be hit by an economic slowdown.
World Bank President David Malpass said that fuel and food prices are rising all over the world. The possibility of stagflation has increased even more. Stagflation refers to an economic situation when the economic growth rate remains constant but inflation and unemployment rate increase rapidly. Dealing with this is very difficult for any country.
David Malpass said that the war in Ukraine, the lockdown in China and disruptions in the food supply chain are increasing the risk of stagflation. In such a situation, it will be difficult for many countries to avoid economic recession. The head of the World Bank says that there is also a lack of investment in many countries of the world, due to which the growth rate will also be affected. At present, the inflation rate in many countries is also at the highest level in several decades.
World Bank President David Malpass has said that the global food supply is likely to be affected. In such a situation, inflation can affect people for a long time. The World Bank chief further said that even if the world escapes from the grip of a global economic slowdown, it is difficult to avoid the stagflation. It can last for many years. This situation may continue till the supply bottlenecks are resolved…
It is noteworthy that the World Bank has projected the rate of global economic growth to remain at 2.7 percent between 2021 and 2024. This is a worse estimate than the recession that occurred between 1976 and 1979. In fact, in order to control inflation, central banks change their policy rates, which sometimes also has an adverse effect. In 1970, to control inflation, interest rates were increased so much that by the year 1982, the situation of global economic recession had arisen.