The World Bank just slashed its global growth forecast for 2022.
What gives? The World Bank is warning that recession will be hard to avoid for many countries.
- Global economic expansion is expected to drop 2.9% this year from 5.7% in 2021.
- Global growth is expected to stay at 2.9% through 2023 or 2024.
The report cited stagflationary risks as one of the main threats to global growth.
- “The war in Ukraine, lockdowns in China, supply-chain disruptions, and the risk of stagflation are hammering growth,” it said.
What is stagflation? Rising inflation and a slowing economy at the same time. The last time we saw worldwide stagflation was in the 1970s.
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