World Bank’s Malpass Sees Risk of Stagflation, Likely Recession in Europe

World Bank President David Malpass responds to a question from a reporter during an opening press conference at the IMF and World Bank's 2019 Annual Fall Meetings of finance ministers and bank governors, in Washington on Oct. 17, 2019. Mike Theiler/Reuters

WASHINGTON—World Bank President David Malpass on Wednesday warned that it could take years for global energy production to diversify away from Russia after its invasion of Ukraine, prolonging the risk of stagflation, or a period of low growth and high inflation.

In a speech at Stanford University, Malpass said there was an increased likelihood of recession in Europe, while China’s growth was slowing sharply and U.S. economic output had contracted in the first half of the year.