The war broke out just as the world economy was trying to recover from the COVID-19 pandemic and new lockdowns in China added uncertainty to the situation, the institution’s president said during a speech in the Polish capital.
“Never before have so many countries experienced a recession at the same time, suffering from the loss of capital, employment and livelihoods. At the same time, inflation continues to accelerate,” Malpass said during a lecture at the Warsaw School of Economics, broadcast virtually. .
Malpass made the remarks ahead of next week’s World Bank and International Monetary Fund (IMF) meetings and recommitted to helping Ukraine rebuild after the war.
The two world institutions have been quick to offer aid to the European country, and the World Bank is mobilizing $3 billion in financing.
As part of this program, Malpass announced that the Bank had obtained donor support for $1 billion in financing under the concessional lending agency, the International Development Association (IDA-AID), as well as $100 million for Moldova.
Calls to reduce dependence on China
Malpass also said that countries are working to diversify supply chains and reduce their reliance on China, which is likely “good for everyone.”
For the World Bank representative, cross-border trade will continue to be important for the world economy, and that China – which is already the second largest economy in the world and will probably become the largest – has a great role to play as a consumer and producer.
However, he said that the Asian country must also be part of a value system shared by other countries in the world trading system.
With information from AFP and Reuters
