WORLD BANK WARNS OF RECESSION RISK DUE TO UKRAINE WAR

Countries around the world face recession as the Ukraine war hits economies already impacted by the Covid-19 pandemic, the World Bank has warned. According to its latest Global Economic Prospects Report, less developed countries in Europe and east Asia are set for a "major recession" (BBC News).

The Bank has also warned that the global economy is at risk of falling into a 1970s-style “stagflation” trap. It has reduced its global growth forecast from a 4.1 per cent GDP projection made in January to 2.9 per cent this year (The Times).

COST-OF-LIVING PRESSURES HITTING MORTGAGED HOUSEHOLDS

The average household that took out a mortgage in 2021 faces a three per cent reduction this year in the amount of disposable income it has left over after home loan, credit commitments and living costs, according to the latest UK Finance Household Finance Review published today (The Independent).

The Review, produced in collaboration with Accenture, also finds that the cost-of-living squeeze will be felt most acutely in lower-income brackets, which have around half the spare income of those in higher brackets even before cost-of-living pressures are factored in (UK Finance).

NEWS IN BRIEF

London’s economy is the best performing in the UK, registering the strongest recovery in the first quarter and the lowest impact from the coronavirus pandemic, according to new data from the Office for National Statistics (Financial Times).

The EU has agreed that companies will face mandatory quotas to ensure women have at least 40 per cent of seats on corporate boards. The EU has also set a 33 per cent target for women in all senior roles, including non-executive directors and directors, such as chief executive and chief operating officer (The Guardian).

The annual pace of house price increases in Britain slowed in May for a third month in a row and a further cooling of demand is likely as households struggle with high inflation, according to research from Halifax (Reuters).

Investor confidence in Britain will be damaged by the windfall tax on energy companies, according to Centrica (The Times).