Entering a full moon after the Moscow government led by Vladimir Putin acted to attack Ukraine, various impacts and issues that arose to affect the world economy.
Most recently, the President of The World Bank, David Malpass, hinted at the impending new ‘catastrophe’ of the food crisis that would emerge due to Russia’s invasion of Ukraine.
When interviewed at a meeting between the IMF and the World Bank, Malpass said that there was a possibility that food prices would rise causing millions of people to fall into poverty and lead to malnutrition, but there was nothing the government could do to solve it.
The World Bank reported that there was a ‘high probability’ that food prices would soar by 37%, further making it more difficult for poor countries to spend on food and other necessities such as schooling.
According to Malpass, the prices of food items such as oil, grains and crops including corn will be affected by high price increases, and although there is an adequate food supply around the world, it will still need to be shared or sold for food distribution to where it is needed.
In addition, he also did not encourage countries from subsidizing production or limiting prices, but instead focus should be given to increasing supply across the world as well as targeted assistance to the poor.
Meanwhile, Malpass also warned of a ‘crisis within a crisis’ arising from the inability of developing countries to repay debts during a major pandemic.
According to him, 60% of poor countries now face debt problems or are at high risk of experiencing debt problems, and the merger with rising interest rates and price spikes will add even more pressure.
