World Bank Group President David Malpass stated that the sharp slowdown in global growth could deepen into a global recession, warning that, "under current policies, global energy production may take years to diversify away from Russia, prolonging stagflation risk." He added that the World Bank has seen a 4% decline in global median income for the first time since it started recording it in 1990.
Malpass stressed that the bank revised down China's growth in 2022 from 5% forecast in April to 2.8%. Meanwhile, the European Union is facing a "sudden spike in energy prices" due to the war in Ukraine and the market rigidities. "The weakness of the euro and high inflation increase the likelihood of a European recession and further constrain the Eurozone's longer-term growth outlook," he cautioned.
