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The World Bank Just Said A Massive Unrecoverable Recession Is On The Way…

For the past months, investors, bankers, and entrepreneurs have been discussing the chances of a coming recession.

Now, the world’s premier international credit institution is joining the chorus that a recession is likely, and warns that something even worse might be on the horizon.

On Tuesday, the World Bank warned that the global economy may be on its way to years of minimal growth and rising prices.

The World Bank announced on Tuesday that the global growth is now expected to fall to 2.9%, a decrease of 1.2 percentage points from the previous forecast at the start of the year.

The international financial institution said that alarm bells are flashing red for a “protracted period of feeble growth and elevated inflation.”

Liz Ann Sonders, Chief Investment Strategist for Charles Schwab said:

“Both inflation and slow growth are putting world economy at risk.” 

Global inflation is continuing to climb to multi-decade highs, which it blamed on supply chain shocks, elevated demand from opening up economies post-COVID, and the Russian invasion of Ukraine, the World Bank cited.

According to the report, global markets expected inflation to peak sometime around the middle of this year, before declining to about 3% by mid-2023.

The report highlighted the continuance of surging energy, rising food prices, and higher interest rates from central banks for a more cynical 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.” 

100% of Advanced economies and 80% of Emerging and Developing countries are now experiencing above-target inflation, the World Bank report indicated. 

The Gateway Pundit added:

The World Bank also downgraded growth prospects for the United States in 2022 to 2.6% from the 3.8% it predicted in January.

The World Bank advised governments to soften the blow from soaring energy and food prices. The group suggested easing financial burdens by expanding debt relief.

The World Bank report cautioned that if geopolitical conditions do not begin to improve, “global growth could be substantially weaker.”

Last week, JPMorgan Chase CEO Jamie Dimon echoed similar concerns, warning investors at a financial conference in New York that his firm is bracing for an economic “hurricane,” adding that while the current consensus is that monetary policy can control inflation, investors must brace for rough times ahead.

Source: Thegatewaypundit

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