Stagflation Risk Growing, Recession ‘Hard to Avoid,’ World Bank Warns

People shop at a grocery store in New York City on May 31, 2022. Samira Bouaou/The Epoch Times

The global economy faces a mounting risk of stagflation—a toxic combination of high inflation and sluggish growth—and many countries could be choked by recession, the World Bank warned in a new report as it slashed over 1 percent from its 2022 economic growth forecast.

The World Bank predicted in its June 7 outlook that the global economy will expand 2.9 percent this year, down 1.2 percentage points from the 4.1 percent pace it forecast for 2022 back in January.