Economics
Stagflation Danger Sees World Bank Cut Global Growth Outlook
- Pain of high inflation, slow growth could persist for years
- Lender reduces 2022 economic growth forecast to 2.9%
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The World Bank cut its forecast for global economic expansion in 2022 further, warning that several years of above-average inflation and below-average growth lie ahead with potentially destabilizing consequences for low- and middle-income economies.
“The world economy is again in danger,” President David Malpass said in the foreword of the latest edition of the lender’s Global Economic Prospects report released Tuesday. “It is facing high inflation and slow growth at the same time. Even if a global recession is averted, the pain of stagflation could persist for several years -- unless major supply increases are set in motion.”