World Bank lowers forecast of global GDP growth by 1/3

The World Bank has lowered its global GDP growth forecast for this year to 2.9 percent from the 4.1 percent expected in January (i.e. by almost a third) and assesses – in the report "Global Economic Prospects – the risk of stagflation as "significant".

"With the war in Ukraine, rising inflation, and rising interest rates, global growth is expected to stagger in 2022. Several years of above-average inflation and below-average growth are likely, with potentially destabilizing consequences for low- and middle-income economies. This is a phenomenon – stagflation – that the world has not seen since the 1970s," World Bank analysts stated.

According to World Bank forecasts, global economic growth will be 2.9 percent this year (down from 5.7 percent last year).

(ISBnews)