Economic outlook has 'darkened', business and government leaders warn in Davos

DAVOS, Switzerland: Multiple threats to the global economy topped the worries of the world's well-heeled at the annual Davos think-fest on Monday , with some flagging the risk of a worldwide recession.

Meanwhile, the repercussions on oil and food markets of Russia's invasion of Ukraine in February - which Moscow describes as a"special military operation" - and COVID-19 lockdowns in China with no clear end have compounded the gloom. The International Monetary Fund last month cut its global growth outlook for the second time this year, citing the war in Ukraine and singling out inflation as a"clear and present danger" for many countries.

"The Russia-Ukraine war may well prove to be a tipping point for hyper-globalisation," she said in a blog post on Monday. "We knew, all knew from Day One that this war was bad economic news. Less growth and more inflation," French policymaker Francois Villeroy de Galhau said."This is the price we accepted together to pay to protect our values ... It was worth paying this price."

The Consumer Price Index shot from near zero two years ago to a 40-year high of 8.5 per cent in March. The Fed responded earlier this month with its largest rate hike in 22 years, and Chair Jerome Powell has signalled increases of a similar magnitude - half a percentage point - at its next two meetings at least.

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