Key takeaways: 

• Stagflation is worried as the international economy suffers fallout from the Covid pandemic, Chinese lockdowns, and the battle in Ukraine.
• The Bank said its international economic prospects (GEP) report was the first systematic try to compare the present condition of the world economy with those during the stagflation of the 1970s.

The global economy meets a prolonged period of weak growth and high inflation reminiscent of the 1970s. Russia’s attack on Ukraine compounds the effect of a two-year pandemic; the World Bank has cautioned.

In its half-yearly financial health check, the Washington-based Bank said echoes of the stagflation of four decades back had pushed it to slash its growth forecast from 4.1% to 2.9%.

David Malpass, the Bank’s president, stated: “The fight in Ukraine, lockdowns in China, supply chain disruptions, and the threat of stagflation are hindering growth. For many nations, the recession will be difficult to avoid.

The Bank said its global economic prospects (GEP) report was the first systematic try to compare the present circumstances of the world economy with those during the stagflation of the 1970s.