The President of the World Bank, David Malpass, affirms that it may take years for global energy production to diversify away from Russia, prolonging the risk of stagflation.
He says that the most pressing danger for the developing world is that a sharp slowdown in global growth turns into a global recession.
Say what the probability of a recession in Europe increases.
States that the development crisis is intensifying and that it is urgent to increase spending on education and health preparedness.
He says debt relief from bilateral and commercial creditors will also play a critical role.
Say what New macro and micro approaches are needed to weather “this perfect storm” and undo development reversals..
Meanwhile, global markets took a break from the fierce selling that has gripped them since the UK government announced its drastic fiscal plans and following the Federal Reserve embarking on its most aggressive path of interest rate hikes yet. since the 1980s. The dollar eased and the euro recovered from 20-year lows.
Source: Fx Street