‘Sharpest Slowdown In 80 Years’: World Bank Releases Ominous News About Recession Risk

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%.

“Many countries will have a hard time avoiding a recession,” World Bank President David Malpass said on Bloomberg TV. “The downside risk is that it could be a global recession. One of the key variables is whether supply comes back online in order to add growth and slow down the inflation rate. But this is the sharpest slowdown in 80 years.”

The World Bank compared global economic conditions to those witnessed in the 1970s — including supply-side issues causing inflation to soar and aggressive stimulus from central banks in advanced economies. One cause for optimism, however, is many central banks’ subsequent development of strong commitments to low and stable inflation rates. – READ MORE

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