Stagflation siren
The World Bank has joined the chorus of stagflation warnings, with the “first systematic” comparison between the 1970s global economy and today.
- Lower-than-projected growth— dampened by Ukraine, supply chain disruptions and COVID lockdowns in China — could persist until 2024, the bank warned today in a new report.
- Inflation is expected to stay high for the duration.
The big picture: With the war in Ukraine and the rise of food shortages, the risk of recession and unrest is rising around the world.
- Another concern: “[D]ebt in many [developing countries] has been on a decade-long upward trend capped by a broad-based surge during the pandemic,” the report warns.
The bottom line: “For many countries, recession will be hard to avoid,” said World Bank President David Malpass.
Go deeper: Quick explainer on stagflation
Πηγή: axios.com
