World Bank’s Gill worried about ‘generalized stagflation’ in global economy

WASHINGTON, Sept 15 (Reuters) – World Bank Chief Economist Indermit Gill on Thursday said he was concerned about “generalized stagflation,” a period of low growth and high inflation, in the global economy, noting the bank had pared back forecasts for three-fourths of all countries.

Gill, who took over his new role on Sept. 1, told reporters at a briefing in Washington that the war in Ukraine and the spillover effects had changed the outlook significantly.

“Six months ago we were really concerned about a slowing recovery and very high prices of some commodities, and now I think we are much more concerned about a generalized stagflation, which brings back really bad memories of the mid-1970s and the lost decades,” he said.

Gill said the current world was more polarized, a growing number of middle-income countries were running into trouble, and many countries were saddled with high debts.

The current situation has brought the “glory days” of reducing poverty worldwide from around 1990 to 2021 to a halt, he said. “Poverty reduction has dropped.”

Reporting by Andrea Shalal; Editing by Mark Porter and Paul Simao

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

Next Post

Luxury Brands Spend More on Marketing, Defying Economic Uncertainty

Many luxury-good sellers aren’t feeling the same pressure to cut marketing budgets that has hit other categories in recent months, thanks to a booming market for luxury cars, travel packages and other premium products. Luxury brands are benefiting from pandemic-era growth in the net worth of the wealthiest consumers, along […] WordPress Theme: Seek by ThemeInWP