World at risk of recession over Russia-Ukraine war
The risk of a global recession is increasing. One-third of the world economy will be hit by recession in the next two fiscal years. This is what the International Monetary Fund-IMF says. Calling the ongoing Russia-Ukraine conflict a 'senseless war', the World Bank and the IMF say that many developing countries may not be able to repay their debt installments on time. However, Dhaka has full capacity to repay the debt. The Governor of Bangladesh Bank like this.
After almost three years, the annual general meeting of World Bank and IMF is being held in Washington DC, USA. The interest of delegates from 188 member countries to participate in the 7-day meeting, which began on Monday (October 10), was remarkable. A long wait of participants can be seen in front of the registration booth.
Discussions between World Bank Group President David Malpass and IMF Managing Director Kristalina Georgieva on the first day of the annual meeting gave an idea of ​​the meeting's priorities. It is said that the Russia-Ukraine war has increased the risk of a recession in the world economy without overcoming the Corona crisis and the loss may be about 4 trillion dollars by 2026.
IMF Managing Director Kristalina Georgieva said the risk of a global recession is increasing next year. We estimate that one-third of the global economy will experience at least two fiscal years of bad weather. The world will lose $4 trillion between now and 2026 due to this recession, which is equivalent to the GDP of Germany. This recession is the result of the shortage of supply in the market due to the corona situation and the Russia-Ukraine war. It has increased the price of food products uncontrollably. On the contrary, every country is suffering from financial crisis.
Meanwhile, World Bank President David Malpass is worried about the condition of developing countries dependent on International Development Assistance-IDA loans with low interest and easy terms.
He said that developing countries like Bangladesh who take IDA loans from the World Bank, many of them will not be able to repay the loans. Now we need to give importance to this area together with multinational banks, development cooperation.
However, Bangladesh Bank has the capacity to repay the debt, said Abdur Rauf, the governor of Bangladesh Bank. A delegation of 8 members led by Bangladesh Bank Governor Abdur Rauf Talukder is participating in this year's annual conference.
