Threat to global economy na di major issue wey dey worry world leaders wey dey gather for Davos dis week.
World Economic Forum (WEF) 2022 dey happun dia and dem go discuss how to help avoid worldwide recession.
Political and business leaders dey gather for di WEF wey don enta day two inside Switzerland.
Some powerful economies including United States, Britain and Europe dey experience di highest level of inflation.
These price rises dey affect confidence of customers and don affect di world financial markets.
Dis don make make central banks including di U.S. Federal Reserve to raise interest rates.
Meanwhile, di effects on oil and food markets of Russia invasion of Ukraine in February and COVID-19 lockdowns for China dey too.
Ukraine crisis wey Moscow describe as “special military operation” and di Chinese situation make di matter more difficult.
“We get at least four crises, wey dey related. We get high inflation… we get energy crisis… we get food poverty, and climate crisis.
“And we no fit solve di problems if we concentrate on only one of di crises,” German Vice Chancellor Robert Habeck tok.
“But if we no solve any of di problems I fear say we fit run enta global recession wit ogbonge effect…on global stability.”
Habeck tok during WEF panel discussion.
Di International Monetary Fund (IMF) last month cut di global growth view for di second time dis year.
IMF cite di war for Ukraine and single out inflation as a “clear and present danger” for many kontris.
IMF Managing Director Kristalina Georgieva for her part say di war, tighter financial conditions and price shocks – for food in particular don clearly “darken” di outlook for di month since, though she no dey expect recession.
European Central Bank (ECB) President Christine Lagarde, go tok for Davos on Tuesday don warn say di growth and inflation dey on opposing paths.
Dis na, as rising price pressure dey limit economic activity and affect di purchasing power of ordinary pipo.
“Di Russia-Ukraine war fit become a major turn for hyper-globalisation,” she tok for one blog post on Monday.
“Dat one fit lead to supply chains wey go dey weak for some time and during di transition, create more persistent cost pressures for di economy,” Lagarde add.
While di slow economy from di Ukraine war dey affect mostly Europe, na di U.S. economy dey experience di greatest price pressures.
Key emerging markets, including China still dey expect to see growth dis year, even if at a slower pace dan as dem predict before.
Marcos Troyjo, president of di New Development Bank wey Brazil, Russia, India, China and South Africa set up say im bank “strong growth” dis year for China, India and Brazil.