World Bank reduces Global Growth due to Stagflationary

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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