WORLD BANK / GLOBAL RECESSION

STORY: WORLD BANK / GLOBAL RECESSION
TRT: 02:45
SOURCE: WORLD BANK GROUP
RESTRICTIONS: PLEASE CREDIT WORLD BANK GROUP ON SCREEN
LANGUAGE: ENGLISH / NATS

DATELINE: 10 OCTOBER 2022, WASHINGTON, DC, USA

SHOTLIST:

1. Various shots, exteriors, World Bank Group headquarters
2. SOUNDBITE (English) David Malpass, President, World Bank Group:
“There’s the risk and the real danger of a world recession next year. The advanced economies are slowing in Europe, and we'll see where it where it goes into next year. But he currency depreciation means that the debt levels for the developing countries are getting more and more burdensome. The rise in interest rates puts added weight on it, and inflation is still a major problem for everyone, but especially for the poor. So those are all issues. The World Bank has a lot of data coming out. We did our poverty report last week for the first time in two years, or it's a two-year cycle. It shows 70 million more in poverty and also very concerning a 4% reduction in median income. So, as we think about our goal of shared prosperity, it's not happening. There's reversals going on in development. I call it a crisis facing development.”
3. Various shots, exteriors, World Bank Group headquarters
4. SOUNDBITE (English) David Malpass, President, World Bank Group:
“We have to face the starting point that interest rates were probably too low at the beginning of the cycle—substantially too low. Some parts of the world are still getting back to what might be a neutral spot. So, getting there quickly is important. And then as we think about the capital flows, I do think there needs to be a rethinking by the advanced economies of some of the basics. One would be to have debt limits. It's very hard to think about a world growth environment where a certain small group of countries have unlimited amounts of debt that they can issue during even during a crisis or apart from a crisis. Because as the governments do that it takes up the available capital.”
5. Various shots, exteriors, World Bank Group headquarters
6. SOUNDBITE (English) David Malpass, President, World Bank Group:
“Then we also have this issue that I mentioned of central banks buying the bonds, which had never been done prior to 2009 the bonds but only of the advanced economies. And so that creates this bias is there's both a regulatory and capital bias within the world that works against the developing countries.”
7. Various shots, exteriors, World Bank Group headquarters

STORYLINE:

At a curtain-raiser event for the IMF-World Bank Group Annual Meetings today (10 Oct) World Bank Group President David Malpass warned that there is a “real danger” of global recession next year.

In a conversation with IMF Managing Director Kristalina Georgieva, Malpass warned that currency depreciation means that debt levels for developing countries are becoming more burdensome, and said new data from the World Bank Group shows 70 million more people are in poverty. Malpass said that governments need to re-think debt limits, and warned that capital is flowing to advanced economy bonds at the expense of the world’s developing economies.