World Bank: 'Considerable' risk of stagflation

Growth forecast slashed

The World Bank has warned of a “considerable” risk of stagflation, with subdued growth likely to persist “throughout the decade”.

Writing in its latest Global Economic Prospects report, World Bank president David Malpass said global growth could fall to 2.1% in 2022 and 1.5% in 2023, if downside risks materialise. He added the combination of the war in Ukraine, Chinese lockdowns and supply chain disruptions make recession "hard to avoid" for many countries. "Changes in fiscal, monetary, climate and debt policy are needed to counter capital misallocation and inequality," Malpass said. Pictet AM warns of recession within two years and backs web3.0 The report detailed that the world has found itself at a jun...