1/ The World Bank warned that the global economy may be headed for several years of above-average inflation and below-average growth. The bank cut its annual global growth forecast to 2.9% from January’s 4.1%, saying “subdued growth will likely persist throughout the decade because of weak investment in most of the world.” The world economy expanded 5.7% in 2021 following the Covid-19 pandemic, which triggered the deepest global recession since World War II. “The world economy is again in danger,” President David Malpass said in the Global Economic Prospects report. “It is facing high inflation and slow growth at the same time. Even if a global recession is averted, the pain of stagflation could persist for several years – unless major supply increases are set in motion.” Treasury Secretary Janet Yellen, meanwhile, conceded that inflation is at “unacceptable levels” and that she expects “inflation to remain high.” She pointed to “disruptions caused by the pandemic’s effect on supply chains, and the effects of supply side disturbances to oil and food markets resulting from Russia’s war in Ukraine” as the primary reasons for high prices. (Washington Post / Bloomberg / Associated Press / CNBC / Wall Street Journal / New York Times)
This is a companion discussion topic for the original entry at https://whatthefuckjusthappenedtoday.com/2022/06/07/day-504/