THE WORLD BANK LOWERS GLOBAL GROWTH OUTLOOK... Region by Region Declines

World News

World Bank Dims Outlook For Global Economy

“For many countries, recession will be hard to avoid,” said David Malpass, the World Bank’s president

Jun 7, 2022, 02:41 PM EDT

"WASHINGTON (AP) — The World Bank has sharply downgraded its outlook for the global economy, pointing to Russia’s war against Ukraine, the prospect of widespread food shortages and concerns about the potential return of “stagflation” — a toxic mix of high inflation and sluggish growth unseen for more than four decades.

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Global Growth Will Be Choked Amid Inflation and War, Says World Bank

The New York Times

The outlook, delivered in the bank's Global Economic Prospects report, is not only darker than one produced six months ago, before Russia's...
2 hours ago

 

...The agency doesn’t foresee a much brighter picture in 2023 and 2024: It predicts just 3% global growth for both years.

For the United States alone, the World Bank has slashed its growth forecast to 2.5% this year from 5.7% in 2021 and from the 3.7% it had forecast in January.

For the 19 European countries that share the euro currency, it downgraded the growth outlook to 2.5% this year from 5.4% last year and from the 4.2% it had expected in January.

In China, the world’s second-biggest economy after the United States, the World Bank expects growth to slow to 4.3% from 8.1% last year. China’s zero-COVID policies, involving draconian lockdowns in Shanghai and other cities, brought economic life to a standstill. The Chinese government is providing aid to ease the economic pain.

Emerging market and developing economies are collectively forecast to grow 3.4% this year, decelerating from a 6.6% pace in 2021...

[    ] The World Bank expects oil prices to surge 42% this year and for non-energy commodity prices to climb nearly 18%. But it foresees oil and other commodity prices both dropping 8% in 2023. It likened the current spike in energy and food prices to the oil shocks of the 1970s.

“Additional adverse shocks,’’ the agency warned in its new Global Economic Prospects report, “will increase the possibility that the global economy will experience a period of stagflation reminiscent of the 1970s. . .

The World Bank noted that the previous period of stagflation required rate increases so steep that they tipped the world into recession and led to a series of financial crises in the poor countries of the developing world"

RELATED >> https://www.worldbank.org/en/news/press-release/2022/01/11/global-recovery-economics-debt-commodity-inequality