A woman shops for groceries at El Progreso Market in the Mount Pleasant neighborhood of Washington, DC, U.S. August 19, 2022. REUTERS/Sarah Silbiger
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WASHINGTON, Sept 15 (Reuters) – The World Bank’s chief economist Indermit Gill said Thursday he was concerned about “broad stagflation,” a period of low growth and high inflation, in the global economy, noting that the bank their forecasts for three quarters of all countries.
Gill, who assumed his new role on Sept. 1, told reporters at a Washington briefing that the war in Ukraine and the spillover effects had changed the outlook significantly.
“Six months ago we were really worried about a slowing recovery and very high prices for some commodities, and now I think we’re much more worried about general stagflation, which is a really bad reminder of the mid-1970s and the lost decades wakes up. ” he said.
Gill said the current world is more polarized, a growing number of middle-income countries are struggling and many countries are burdened with high levels of debt.
The current situation has brought the “glory days” of global poverty reduction from around 1990 to 2021 to a standstill, he said. “Poverty reduction has declined.”
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Reporting by Andrea Shaal; Edited by Mark Porter and Paul Simao
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