“Before the war in Ukraine, the recovery in 2022 was already losing momentum due to rising inflation and persistent supply bottlenecks” as “developing economies were falling substantially behind,” he said.
Additionally, the war in Ukraine and the lockdowns due to Covid-19 in China are further reducing the path of recovery,” continued the head of the multilateral organization.
In this regard, he stressed that “Never have so many countries experienced a recession at the same time, suffering the loss of capital, jobs and livelihoods.”
“At the same time, inflation continues to accelerate, reducing the real income of households around the world, especially the poor,” warned Malpass, for whom global inflation is a consequence of the extraordinary monetary and fiscal policies that advanced economies have been implementing to boost their demand, which, combined with restrictions and interruptions in supply, have driven price increases and worsened inequality in everyone.
Likewise, the head of the World Bank stressed that the war in Ukraine and its consequences are also creating sudden shortages of energy, fertilizers and food, pitting people against each other and their governments, and even people who are physically distant from this conflict are feeling its impacts.
Likewise, “l“Trade disruptions have already sent grain and commodity prices skyrocketing” and “wheat exports from Black Sea ports have fallen sharply”he pointed.
He also referred to “the intense drought in South America” and warned that this situation “is reducing world food production.”
However, he pointed out that there are additional factors that are exacerbating the current food supply problems, namely the supply of fertilizers, energy prices and self-imposed restrictions on food exports.
The head of the organization explained that the prices of fertilizers depend on the prices of natural gas, which have shot up recently: “As LNG is shipped to Europe, LNG shortages are occurring elsewhere, reducing fertilizer production and disrupting the planting season and crop productivity. Russia and Belarus are big producers of fertilizers, which materially adds to the problem.“, lament.
Source: Ambito
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