October 1, 2022
World Bank says recession will be 'hard to avoid' for many countries

You can add the World Bank to the growing chorus sounding recession alarm bells. In its latest outlook, World Bank president David Malpass said “for many countries, recession will be hard to avoid.”

JPMorgan Chase (JPM) CEO Jamie Dimon referred to an economic “hurricane” on the horizon last week while Tesla’s (TSLA) Elon Musk has said he has a “super bad feeling” about the economy.

The reasons for the gloom? Malpass said in the World Bank’s latest outlook Tuesday that “the war in Ukraine, lockdowns in China, supply-chain disruptions and the risk of stagflation are hammering growth.”

Stagflation, the combination of stagnant economic growth and high inflation, has become a major worry of late. The trend is reminding experts and older consumers of the late 1970s, when an oil shock and sluggish economy led to two downturns, a so-called double-dip recession, in the early 1980s.

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