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War in Ukraine, World Bank warns of global recession

War in Ukraine, World Bank warns of global recession

The president of the World Bank has warned that the war in Ukraine could trigger a global recession.

David Malpass noted the role of conflict in raising food and energy prices.

He said Germany's economy, the world's fourth largest, has already slowed significantly due to higher energy prices.

The war has also led to a shortage of fertilizers that could worsen economic conditions, he said.

"As we look at global GDP ... it's hard now to see how we avoid a recession," he said, speaking at an event hosted by the US Chamber of Commerce.

Europe, China and the US are seeing slower growth, while developing countries are being hit even harder by inflation, he said.

China’s economy has been hit particularly hard due to increased pressure from the coronavirus pandemic, which prompted authorities to impose blockade restrictions in Shanghai, as well as a pre-existing real estate crisis.

The World Bank lowered its global growth forecast for 2022 by almost a full percentage point last month, from 4.1% to 3.2%, citing the impact of the conflict.

Ukraine and Russia are major players in world food production, accounting for 53% of global trade in sunflower oil and seeds, and 27% in wheat, according to the United Nations.

In Africa, 25 countries import more than a third of their grain from Ukraine and Russia.

Russia and Ukraine export 28% of fertilizers produced from nitrogen and phosphorus, as well as potassium.

Ukraine has had problems transporting supplies abroad due to the conflict, while Russian energy exports have been hit by sanctions.

Source: Sky News

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