WASHINGTON: Although cross-border commerce and investment are expected to continue, World Bank President David Malpass said on Wednesday that the big economies are making a “strong effort” to minimise their reliance on Russian energy supplies and Chinese supply chains.
Russia’s invasion of Ukraine has sparked fears of a global economic fragmentation, which Malpass attributed to an over-reliance on Russian energy and Chinese supply lines.
In a news conference, he said, “There are shifts underway, that may be excellent for China.” China may now expand into new markets and diversify its economy by relying less on certain supply chains that are no longer reliant on China.
According to Malpass, global commerce and investment would suffer if the world were divided into distinct blocs because of the changes.
“I don’t think this is a bad thing.”
“Looking at regional trade growth is a vital step for the globe,” he added. “I’m certain that the world’s markets will continue to function.”
Many members of the World Bank and IMF gathering in Washington this week expressed a strong desire to retain and even extend market access to ease food insecurity, said Malpass.
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