World Economic Forum warns of danger of global recession

Political and business leaders gathered at the World Economic Forum warned about the danger of a global recession, due to the different crises that converge in the economic scenario.

On the first day of the meeting, the German vice-chancellor, Robert Habeck, said that four crises currently coexist: high inflation, rising energy prices, food poverty and climate problems.

We cannot solve the difficulties if we concentrate on just one of these areas, but if none of them is solved, we will actually enter a recession with a tremendous effect on global stability, the politician said.

To these statements were added the warnings of the International Monetary Fund (IMF), which in a report released on Monday urged states to adopt measures to restore consumer confidence and avoid geo-economic fragmentation. The document points out that this is the way forward in a context where the economy is facing perhaps its greatest challenge since World War II and points out four priority measures.

These are reducing trade barriers, promoting agreements on the debt of vulnerable countries, modernizing cross-border payment systems, and tackling the transformation to green energy.

However, the message conveyed by the Ukrainian president, Volodimir Zelenski, was far from that projection, calling for the cessation of all trade with Russia and imposing the maximum possible sanctions on that country, since in his opinion they have not yet reached that point.

Until May 26, the Swiss town of Davos-Klosters will be discussing issues such as the outlook for the energy sector, the instability of the world economy, the food emergency and climate change.

Prensa Latina

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