Recession 'will be hard to avoid' across most of the world, World Bank says
The future of the world economy looks much worse than it did just months ago, and most countries will have a hard time avoiding downturns in the near future, according to a newThe global economy entered 2022 with a healthy tailwind. Vaccine rollouts and nationwide reopenings unleashed a wave of spending and extraordinary economic growth last year. That boost has now faded, and new pressures are hampering growth around the world.
Those factors all led the World Bank to lower its forecast for 2022 global growth. The organization now sees the world economy expanding 2.9% through the year, down from the 4.1% forecasted in January and the 5.7% gain seen through last year.will be hard to avoid," David Malpass, president of the World Bank, said in the Tuesday report.
Among the biggest risks to the recovery is stagflation, he added. The term references periods of weak economic growth and persistently high inflation. The US last dealt with the phenomenon in the 1970s, and the high interest rates needed to cool inflation posed massive economic hardships on Americans.
Stagflation could reverse much of the progress made over the past two years, particularly if it emerges on a global scale. "With inflation now running at multidecade highs in many countries and supply expected to grow slowly, there is a risk that inflation will remain higher for longer than currently anticipated," Malpass said, adding that"subdued growth" will likely last throughout the 2020s.
Ireland Latest News, Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
World Bank warns global economy may suffer 1970s-style stagflationThe global economy may be headed for years of weak growth and rising prices, a toxic combination that will test the stability of dozens of countries still struggling to rebound from the pandemic, the World Bank warned.
Read more »
World Bank Slashes Global Growth Forecast to 2.9%, Warns of 1970s-Style StagflationThe World Bank on Tuesday slashed its global growth forecast and warned that many countries could fall into recession.
Read more »
World Bank: Lowers 2022 global growth forecast to 2.9% from 4.1% in JanuaryThe World Bank lowered their forecast for global growth in 2022 on Tuesday to 2.9% from their 4.1% estimate put out in January, Reuters reported. The
Read more »
Singapore's dengue 'emergency' is a climate change omen for the worldSingapore says it is facing a dengue 'emergency' as it grapples with an outbreak of the seasonal disease that has come unusually early this year.
Read more »
‘Jurassic World: Dominion’ First Reviews Are Surprisingly MixedThe first reviews of JurassicWorldDominion are here and ... they’re not all positive.
Read more »
Local soldier honored on D-Day for service and sacrifice during World War IIA Buffalo Soldier in Mobile was honored on the D-Day anniversary for his actions in World War II.
Read more »