The World Bank and the International Monetary Fund warn of “increasing risks” from a global recession

World Bank President David Malpass and International Monetary Fund Managing Director Kristalina Georgieva said there is an increased risk of a global recession.

With inflation rising in much of the world and interest rates rising to try to contain price hikes, the result should be lower growth in much of the world.

“There is a danger and a real danger of a global recession next year,” Malpass said in an interview with Kristalina earlier in the week. The annual meeting between the two institutionsThis Monday, the tenth.

Malpass noted slowing growth in advanced economies and currency depreciation in many developing countries. Kristalina said the IMF sees a “big problem” in China, the world’s second-largest economy, as volatility hampers growth.

According to the foundations, the world is dealing with the challenges of the pandemic, the war in Ukraine, and the global food and energy crisis. “These crises threaten livelihoods and affect the most vulnerable,” the World Bank said in a statement. “There is an absolutely urgent need for policy makers, international organizations and the private sector to take decisive and coordinated action to build resilience in this age of volatility.”