Headline Roundup • June 7th, 2022
World Bank Lowers 2022 Global Growth Prediction Amid Recession Fears
Economy And Jobs,Banking And Finance,World,World Bank,Inflation,Stagflation,Supply Chains,Coronavirus Lockdowns,Ukraine War,Federal Reserve,Janet Yellen,Trade
Summary from the AllSides News Team
The World Bank sharply lowered its global economic growth prediction for 2022 on Tuesday — from 4.1% to 2.9% — as experts continued to warn of a possible recession.
The new prediction, released in the bank’s latest Global Economic Prospects report, would mark a steep decline from 2021’s unusually high 5.7% growth. World Bank President David Malpass said the change stemmed from “the war in Ukraine, lockdowns in China, supply-chain disruptions, and the risk of stagflation,” adding, “For many countries, recession will be hard to avoid.”
In a press release, the World Bank compared and contrasted current trends with 1970’s stagflation. While comparing similarly high inflation preceded by loose monetary policy, the release also highlighted differences like a stronger dollar, relatively slower inflation and more stable financial institutions. The same day, Treasury Secretary Janet Yellen told the Senate Finance Committee that U.S. inflation was “unacceptable.”
Coverage was sparse among major right-rated outlets but common among center and left-rated outlets, particularly business-focused outlets. Headlines often highlighted Malpass’ comparison to 1970’s “stagflation,” which echoed previous warnings from several analysts across the spectrum.
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Martin Mejia/AP
The 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 Tuesday.
Not since the 1970s — when twin oil shocks sapped growth and lifted prices, giving rise to the malady known as “stagflation” — has the global economy faced such a challenge.
The bank slashed its annual global growth forecast to 2.9 percent from January’s 4.1 percent and said that “subdued growth will...
Bloomberg | Getty Images
The World Bank on Tuesday slashed its global growth forecast and warned that many countries could fall into recession as the economy slips into a period of stagflation reminiscent of the 1970s.
Global economic expansion is expected to slip to 2.9% this year from 5.7% in 2021 — 1.2 percentage points lower than the 4.1% predicted in January, the Washington-based bank said in its latest Global Economic Prospects report.
Growth is expected to then hover around that level through 2023 to 2024 while inflation remains above target in most economies, the...
Photo by Samuel Corum/Getty Images.
The World Bank cut its global growth forecasts for 2022 on Tuesday and warned of the “sharpest slowdown in 80 years.”
In January, the international financial institution forecasted 4.1% economic growth for this year. In light of elevated inflation, lockdowns in China, the Russian invasion of Ukraine, and other phenomena, the World Bank revised its 2022 forecast to 2.9%.
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