World experiencing one of the deepest recessions since the Great Depression

World Bank President David Malpass has expressed his concerns over the financial crisis deepening with the COVID-19 pandemic. He has termed the COVID-19 pandemic a "catastrophic event" for many developing and emerging countries.

Malpass was attending the annual meetings of the International Monetary Fund and the World Bank. Responding to the questions, he said that the world was currently experiencing a K-shaped recovery. It means that the advanced economies are providing support, especially financially. But people in the developing countries who have lost their jobs are totally dependent on social welfare programs. With this, comes the risk of disruptive debt crisis in countries.

"The recession has been deep, one of the deepest since the Great Depression. And for many developing countries, and for the people in the poorest countries, it is truly a depression, a catastrophic event. It is continuing to add to the ranks of those in extreme poverty," said David Malpass.

He said that the World Bank is focused on solving these issues and is already building a growth program for the countries. The board has also approved extensions to the health emergency programs for up to $12 billion for vaccine distributions in the countries which do not have any access to proper healthcare facilities. "What we're trying to do at the World Bank is recognize that problem and provide extra support for social protection for the poorest in countries, also recognizing the agricultural challenges," he said.