The world is really threatened with recession next year, World Bank President David Malpass said ahead of the start of the bank and International Monetary Fund’s autumn meetings. According to Malpass, development efforts around the world are currently addressing a number of problems:
“Debt levels for developing economies are becoming a growing burden. Rising interest rates are aggravating the situation. Inflation continues to be a problem, especially for the poor. We have a lot of data on this topic. at the World Bank, especially with last week’s poverty report. It’s the first in two years, you know, it’s a two-year cycle. We have 70 million people who fell into poverty during that time and it’s also very disturbing that there is a 4% drop in the number of middle-income people, “Malpass noted.
The managing director of the International Monetary Fund, Kristalina Georgieva, indicated for her part that the world cannot afford for inflation to continue to rise for too long and become a “runaway train”. Georgieva described the factors for high inflation:
“The effect of Covid-19 on supply chains, this senseless war that is driving up prices, especially for energy and food”.
Once again, Kristalina Georgieva stressed that the fight against climate change must not stop and recalled that humanity “can survive high inflation and recession, but not inexorable climate change”.
