World Bank's Malpass sees risk of stagflation, likely recession in Europe
FILE PHOTO: World Bank President David Malpass responds to a question from a reporter during an opening press conference at the IMF and World Bank's 2019 Annual Fall Meetings of finance ministers and bank governors, in Washington, U.S., October 17, 2019. REUTERS/Mike Theiler/File Photo
WASHINGTON : World Bank President David Malpass on Wednesday warned that it could take years for global energy production to diversify away from Russia, prolonging the risk of stagflation, or a period of low growth and high inflation.
In a speech at Stanford University, Malpass said there was an increased likelihood of recession in Europe, while China's growth was slowing sharply, with grave consequences for developing countries.
Addressing the current "perfect storm" of rising interest rates, high inflation and slowing growth - and undoing the reversals in development required new macro- and microeconomic approaches, Malpass said.
