WASHINGTON (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 that the bank had downgraded forecasts for three-quarters of all countries.
Gill, who took over his new role on Sept. 1, told reporters at a briefing in Washington that Russia’s 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 last decades,” he said.
(Reporting by Andrea Shalal; Editing by Mark Porter)
