Due to the effects of Russia's invasion of Ukraine, the World Bank dropped its global growth prediction for 2022 by nearly a full percentage point, to 3.2 percent from 4.1 percent, in April.
"As we look at the global GDP ... it's hard right now to see how we avoid a recession," Malpass said without giving any specific forecast.
According to the World Bank president, the economies of Ukraine and Russia are likely to contract significantly, while Europe, China, and the United States are expected to grow more slowly. He claimed that developing countries were being struck even harder due to a lack of fertiliser, food stores, and energy sources.
"The idea of energy prices doubling is enough to trigger a recession by itself," the World Bank president said.
According to the World Bank president, China's unusually rapid slowdown in growth was caused by the COVID-19 outbreak, inflation, and the country's pre-existing real estate issue. Malpass, on the other hand, gave no indication of when a global recession would start.
The World Bank approved a $500-million programme in June 2021 to assist MSMEs in India in increasing liquidity access for viable small firms affected by COVID-19. As part of the government's $3.4 billion MSME Competitiveness – A Post-COVID Resilience and Recovery Programme, the programme aims to improve the performance of 555,000 MSMEs and is estimated to raise $15.5 billion in funding (MCRRP).
