The war in Ukraine, and thus the uncertainty in the energy and food markets, are the main factors that increase the risk of a global recession. The head of JP Morgan warns politicians.
More and more experts openly believe that the global economy is on the verge of a recession. A similar opinion is shared by the head of one of the largest banks in the world, JP Morgan Chase. Jamie Dimon spoke before the US Finance Committee. There was a lot of uncertainty about the immediate future in his speech. The head of the bank warned politicians that if they do not want to deal with a huge crisis, they must prepare for the worst.
- There is a small chance of a soft landing, but there is also a chance of a severe recession. Due to the war in Ukraine and the uncertainty it causes for food supply chains and the energy market, the situation is likely to worsen. I think you should prepare for the worst so we’ll be ready if it does happen… This was stated by JPMorgan Chase President Jamie Dimon at a hearing at the US Finance Committee.
The world is on the verge of a recession
David Malpass, head of the World Bank, spoke in the same tone, but also used a very unloved word for “s”.
The World Bank believes that due to persistent inflation, which is currently the biggest problem for many governments, the situation in the world will be more difficult than expected in June. Many economies can struggle with stagflation.
“Global growth is slowing sharply and will slow even more as countries fall into recession. I am concerned that this trend will continue for longer, with devastating long-term consequences for emerging market and developing countries.” he told AFP on 19 September.
Source: Wprost
