World Bank’s Malpass sees risk of stagflation, likely recession in Europe

WASHINGTON- World Bank President David Malpass on Wednesday warned that it could take years for global energy production to diversify away from Russia, prolonging the risk of stagflation, or a period of low growth and high inflation.

In a speech at Stanford University, Malpass said there was an increased likelihood of recession in Europe, while China’s growth was slowing sharply, with grave consequences for developing countries.

Addressing the current “perfect storm” of rising interest rates, high inflation and slowing growth – and undoing the reversals in development required new macro- and microeconomic approaches, Malpass said.

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