one-third of the world economy will experience contraction. even if it is positive, it will feel like a recession because of shrinking incomes and rising prices. tightening monetary policy too much and too fast could push economies into prolonged recession. what are your thoughts on a global recession coming? that is a gloomy outlook. you ve seen kind of a blow back against the u.s. fed s policies of raising the interest rate to reduce inflation in the u.s. the rest of the world is saying you re driving up the dollar, you re going to make our problems worse and you might start developing country debt crises like we ve seen other times when the dollar went up. when you ve got war in ukraine driving up energy prices, you ve got actions by opec, you still
Group of 20 finance chiefs started official meetings in Bali Friday with an eye toward progress on food security and debt issues as tensions over Russia…
the president of the world bank said many countries will have a hard time affording a recession. even talk about the risk of deepening hunger and famine. in assessing the bull economy, the bank dramatically cut its annual growth forecast to 2.9% from january s ballpoint i%. a big part of it has to do with the war in ukraine. the fallout has really dragged down growth while pushing up the price of commodities. that combination ends up feeling inflation. the price increases we are seeing are being felt by many countries right around the world. the last time the global economy based stagflation was in the 1970s when speak interest rate rises were needed to control inflation. those rate increases sparked a global recession and a string of debt crises in developing economies. the bank is worried history is about to repeat itself and that s why the world bank is calling on governments to act