Weak growth and high inflation are predicted by the World Bank like 1970's

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Covid pandemic, Chinese lockdowns, and Ukraine war could cause stagflation like 1970's

Stagflation is slow economic growth, high unemployment, and rising prices (i.e., inflation)

Worldbank said the growth slowdown between 2021 and 2024 would be twice as bad as between 1976 and 1979. 

Worldbank added that recovering from the high inflation of the mid- and late-1970s required steep interest rate hikes in the west.

The World Bank said developing and emerging market economies were most vulnerable to the growth slowdown.

After halving from 5.7% in 2021, growth would be stuck at 3% in 2023 and 2024 as war affected investment and trade, pandemic demand faded, and policy support was withdrawn.

This year, The report said advanced economies would grow by 5.1% this year and emerging and developing countries by 6.6%.

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