Long-term recession crisis looming over Europe

Washington/Geneva: Slowdown in the Chinese growth rate and falling economic output in the United States are deepening the grip of recession in Europe. The fuel crisis in Europe, dependent on Russian fuel, will continue in the coming times. The President of the World Bank, David Malpass, warned that the economic recession crisis is hovering over Europe and will last for a long time. The World Trade Organization has said that the world is being pushed into recession due to various international crises.

Speaking at a program at Stanford University in the United States, the President of the World Bank, David Malpass, reprimanded Europe in harsh words. European countries blame the Russian attacks on Ukraine and block the supplies directly for the economic crisis in European countries. But the World Bank president said that developments elsewhere in the first six months of the year are also responsible for the economic slowdown. Malpass said the slowdown in the Chinese growth rate and the decline in US economic output are also contributing factors.

Malpass warned that this economic collapse in the world’s largest economies, the United States and China, could seriously impact developing countries. Malpass pointed out that it is not since the conflict between Russia and Ukraine, but poverty in European countries has been increasing even before Corona times. Efforts to eradicate poverty in Europe slowed down after 2015. At the same time, Malpass pointed out that the average income in European countries also decreased by four per cent. The head of the World Bank has warned that the European countries are facing such a crisis for the first time since 1990.

In the coming times, developing countries will face a massive increase in the price of food grains, fertilizers and fuel. Malpas has concluded that this will affect inflation, currency devaluation and capital flows. Malpass said that the available global capital is not enough to meet the demands of developing countries.

While the head of the World Bank expressed concern over the economies of European countries, the World Trade Organization claimed that a global recession was imminent. A few days ago, the International Monetary Fund also warned about the financial crisis in European countries.