World Bank cuts growth estimate for 2022, sounding alarm on potential recession

CNN– The World Bank warns things are going to get worse before they get better. It’s just the latest group to sound the alarm on a potential global recession.

The bank is cutting its growth estimate for this year even further. Last year, the global economy grew 5.7%. This year’s growth estimate is now sharply down to less than 3%. The bank blames a number of problems, including the risk of “stagflation,” a phenomenon that combines stagnant economic growth with high inflation and high unemployment.

Continuing challenges such as the war in Ukraine, supply chain issues and the continuing waves of coronavirus cases are harming both consumers and employers and could send world markets into a downturn. The World Bank president cautions it could be the worst slowdown in years.