Former President of World Bank sounds ‘terrible global recession’ alarm bell

Former President of World Bank sounds ‘terrible global recession’ alarm bell

SHARJAH: Dr. Jim Yong Kim, Former President of the World Bank Group, has attributed the current global inflation partly to the $6 trillion worth of stimulus provided by the US to tackle the consequences of the COVID-19 pandemic.

"There are many things that are happening at the same time. We just experienced the worst pandemic in one hundred years. The response in the UAE was very good. But in the rest of the world, 6 million people died. So, this a huge tragedy. It’s caused a lot of upheavals in the economy. In the United States for example, there is US$6 trillion worth of stimulus that may have led now to the situation of a very high inflation," the former world official told the Emirates News Agency (WAM) on the sidelines of the International Government Communication Forum, which started in Sharjah today.

Formula for a recession

Kim, who from July 2012 to February 2019, served as the 12th President of the WPG, detailed other reasons behind "the very dangerous situation" the world is reeling under now. "Now what’s happening in response to the inflationary pressure is that many countries are making the same things at the same time. They are reducing their fiscal