Posted on 06/07/2022 8:36:51 PM PDT by lasereye
The World Bank warned Tuesday that the global economy faces the risk of dreaded "stagflation," with this combination of high inflation and low growth tipping some countries into recession.
“The war in Ukraine, lockdowns in China, supply-chain disruptions, and the risk of stagflation are hammering growth. For many countries, recession will be hard to avoid,” said World Bank President David Malpass.
In its updated Global Economic Prospects report, the World Bank slashed its forecast for global growth this year to 2.9%, down from the 4.1% forecast it published in January.
The World Bank said most of the downgrade is attributed to the Russian invasion of Ukraine, which it had not accounted for in its previous forecast. The international body said it expects “essentially no rebound” next year, projecting only 3% growth for the world in 2023.
The report pointed to the persistence of high energy and food prices — combined with higher interest rates from central banks around the world — for the gloomier outlook.
“The global outlook faces significant downside risks, including intensifying geopolitical tensions, an extended period of stagflation reminiscent of the 1970s, widespread financial stress caused by rising borrowing costs, and worsening food insecurity,” the report reads.
In the United States, the World Bank downgraded growth prospects for 2022 to 2.6% from the 3.8% it expected in its January forecast.
Although the downgrade does not imply a recession, Wall Street firms have already taken note of recessionary warnings from markets. And rapid price increases are already driving conversations about recession at American dinner tables.
But the World Bank report highlights the fact that recessionary concerns are not a uniquely American phenomenon.
The World Bank called on governments around the world to “avert the worst consequences” of this economic slowdown.
(Excerpt) Read more at finance.yahoo.com ...
Debt relief of what? Poor countries I guess. I take it the World Bank is a broken record on this point.
“Recession will be ‘hard to avoid’ as stagflation risks rise: World Bank”
Neocons: A small price to pay for making sure that thousands of Ukrainians get killed.
...or something like that, I guess.
Who is making sure thousands of Ukrainians get killed?
The neocons are just as bad with screaming with their eyes closed PUTIN BAD as the Orange man bad types same lack of critical thinking skills im both types of people. Hey at least with the demand destruction of a recession fuel costs will come back in line with production capacity. That an if you are smart enough to short the market there is a lot of money to be made. Bear markets make people richer too.
“Who is making sure thousands of Ukrainians get killed?”
The ones who did not and will not allow Ukraine to negotiate in good faith, starting with Boris Johnson and the US Neocons (such as in March, when they pulled the plug on negotiations that were leading to an agreement).
They need this war to try to weaken Russia (LOL), and Ukrainians are expendable to them...I guess.
“Hey at least with the demand destruction of a recession fuel costs will come back in line with production capacity.”
That does always happen when oil is free to flow on its most efficient routes, but in this case there’s so much re-adjustment going on, that just the demand for tankers is going to double (just a guess), due to the much longer transit times and the shutdown of pipelines to Europe.
...so who knows the end result!
Russian oil is going to India than back out on tankers as “Indian” oil so it’s possible the tankers supply will be stressed having to haul oil twice just to get around the moronic sanctions. China and India both could buy every drop of Russian crude produced if they chose too they have the demand ceiling for it. The USA is critically short on refined product production capacity we lost over a million bbl of capacity in the pandemic that’s never coming back on line. Best hope is world refineries step up and produce more for the market and we import that extra million bbl per day we need.
Yea, heard the same. As I say say here once in a while: If Putin knew how the West was going to ‘sanction’ Russia, he likely would have invaded Ukraine years ago.
Reducing the buying power of retired people’s does tend to result in recessions.
Europeans, especially the Greens. They are the ones empowering Putin.
The recession started on the 4th of November 2020 and has been accelerating ever since. The Depression has already started in some nations and is not being reported in our media.
Must be the same ones who make sure of an oil shortage a lot of dots to be connected.
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