The World Bank has said that the worldwide economy recuperating from the impacts of the Corona pandemic has been hit twofold by the Russia-Ukraine War. Because of this, the apprehension about monetary downturn has extended in numerous nations. News organization IANS cited a BBC report as saying that Europe as well as East Asia will be impacted by the impacts of the Russia-Ukraine War. The World Bank has cautioned that numerous nations in Europe and East Asia could be hit by a monetary stoppage.
World Bank President David Malpass said that fuel and food prices are rising all over the world. The possibility of stagflation has increased even more. Stagflation refers to an economic situation when the economic growth rate remains constant but inflation and unemployment rate increase rapidly. Dealing with this is very difficult for any country.
David Malpass said that the war in Ukraine, the lockdown in China and disruptions in the food supply chain are increasing the risk of stagflation. In such a situation, it will be difficult for many countries to avoid economic recession. The head of the World Bank says that there is also a lack of investment in many countries of the world, due to which the growth rate will also be affected. At present, the inflation rate in many countries is also at the highest level in several decades.
