World Bank: It is difficult for some countries in the world to avoid recession

The World Bank has warned that the hope of avoiding a recession is fading for a number of countries in the world, stressing that the war in Ukraine, the supply chain crisis, the closure related to the outbreak of the Corona virus in China, and the staggering rise in energy and food prices, are all factors that harm the economies of the countries of the world, which weighs heavily. Her shoulders are slower growth and escalating inflation.

The set of problems facing the global economy are undermining growth, World Bank President David Malpass said in a statement.

"For many countries, it will be difficult to avoid a recession," he added.

Previous evidence had expected global growth to slow to 2.9% this year from 5.7% in 2021. But the expectations contained in the bank's latest global economic prospects report are not only more pessimistic than what was produced six months ago, before the outbreak of the war in Ukraine, It is also lower than the International Monetary Fund forecast last April.

Among the more advanced economies such as the US and Europe, growth is expected to slow to 2.5%.

It is also expected that the growth rate in China will decline to 4.3% from 8.1% in 2021, and that the Russian economy will contract by 8.9%, which is a significant decline, but still less than other forecasts.

The report said that per capita income in developing economies will decrease by 5% from the level it was heading to before the pandemic, and the burden of government debt will increase, with increasing interest rates, and about 75 million people will face extreme poverty more than was expected before the pandemic.

The World Bank, which provides financial support to low- and middle-income countries, stressed the need to take a set of familiar measures to treat recession, which include reducing government spending and using interest rates to curb inflation, noting that public spending should give priority to protecting the most vulnerable people. and ensuring that low-income countries have adequate supplies of COVID-19 vaccines.

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