Riyadh, Oct. 24, 2023 – Ajay Banga, the World Bank President, says the geopolitical tensions across the world pose serious risks to the global economy.
Banga said this while speaking at the opening ceremony of the Future Investment Initiative (FII) in Riyadh, Saudi Arabia.
He said that events such as the war in Gaza posed serious risks to the well-being of the global economy.
“And then, how long before the next pandemic? There is so much going on in the world and geopolitics in the wars that you’re seeing and what just happened recently in Israel and Gaza.
“At the end of the day, when you put all this together, I think the impact on economic development is even more serious,”
“So, I would be very careful of fixating on one and ignoring the others right now. I think that we’re at a very dangerous juncture.”
Banga said the 5% yield of the U.S Treasury announced on Monday was a sign of impending slowdown in the global financial system since it was an unusual occurrence.
“The U.S. 10-year Treasury (yield) just crossed 5% briefly yesterday, these are areas we haven’t seen. So yes, that is right there lurking in the shadows,”
Banga also said the political risks in developing and emerging economies deter the much-needed private sector investment to meet renewable energy goals. (GBN)
