On Tuesday June 7th, the World Bank slashed its global growth forecast to 2.9% for 2022. In addition, the bank warned that the global economy could slip into a stagflation period that resembles the 1970s.
At the start of 2022, the World Bank had predicted 4.1% global growth but that was before Russia invaded Ukraine and before inflation picked up speed. In our opinion, global growth will come in below the World Bank's 2.9% estimate because consumers don't quite understand the economic situation as of yet; it hasn't really hit home so to speak.
Looking forward, the World Bank expects growth to stay around the 2.9% level through 2024 as inflation continues to ravage nation after nation. Is the World Bank on correct? What do you think?