On Tuesday (June 7), the World Bank lowered its global economic growth forecast to 2.9% for 2022 from 5.7% in 2021. The prediction was 1.2% lower than the 4.1% forecast in January.

The bank also warned that the world economy could slide into a period of stagflation reminiscent of the 1970s and many countries might fall into recession.

The World Bank pointed out in its report that the Russia-Ukraine war has led to higher inflation and more tense financial conditions. The global economy is now entering a period of weak growth and rising inflation.

Global inflation was expected to ease in 2023, but the inflation may still be above most countries’ target level.