World Bank mention recession the global economy is in sight. In fact, the World Bank is pessimistic that countries in the world can avoid the threat of the economic downturn.
World Bank President David Malpass said the current economic recession was caused by a sharp spike in inflation in various countries, also known as stagflation.
“War in Ukraine, lockdown in China, supply chain disruptions and the risk of stagflation hit growth. For many countries, a recession will be difficult to avoid,” Malpass said in the latest report quoted on Wednesday (8/6).
In the Global Economic Prospect June 2022 (GEP) report, the World Bank stated that the high inflationary pressure in many countries was not in line with economic growth.
The World Bank sees the decline in economic growth as widespread as reflected in the cuts made in both developed and developing countries.
This year’s economic growth projection for the Eurozone as the epicenter of geopolitical conflicts has been revised downwards from 4.2 percent to 2.5 percent.
The estimate is that Russia’s growth is predicted to contract 8.9 percent and Ukraine’s to contract 45.1 percent.
The economic growth of two big countries, namely the United States (US) was also cut to 2.5 percent and China to 4.3 percent this year.
Then, developing countries also experienced a decline in economic projections. They are Japan to 1.7 percent and India to 7.5 percent, and Brazil to 1.5 percent.
Meanwhile, Indonesia is quite safe from the threat of this economic recession. This is because the World Bank has not changed its economic growth projection, which this year will remain at the level of 5.1 percent.
(idy/one)
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