G7 finance ministers and central bankers have expressed their concern that stagflation is unstoppable.
The threat of stagflation is increasingly threatening the world economy. Bloomberg writes about it.
G7 finance ministers and central bankers have expressed their concern that stagflation is unstoppable.
“The war in Ukraine has additional consequences for the economy. It means higher inflation combined with a loss of momentum for recovery from the pandemic. We need to talk about what we can do to avoid these situations. of stagflation, ”said German Finance Minister Christian Lindner.
It was reported that there was a disastrous triple combination of rising inflation, slowing growth and rising unemployment, and “this is the worst case scenario for central banks and legislators who have to choose which disease to fight.”
“Higher food and energy prices are having a stagflationary effect, lowering production and spending and raising inflation around the world,” Treasury Secretary Janet Yellen said.
The outlook for a global recession remains low, at least this year, but the pace of events is surprising to policymakers and investors as financial markets crash and growth forecasts continue. which changes.
Price increases in the UK are reported to have reached a 40-year high and Bank of England Governor Andrew Bailey has warned that rising food prices could have “apocalyptic” consequences for the world.
The publication also reported that the S&P 500 index fell 4% on May 18, the most significant one -day decline since 2020.
“The biggest shock is coming from China, where analysts continue to lower their forecasts. Standard Chartered, Goldman Sachs Group and Citigroup cut their growth forecasts this week, as did Bloomberg Economics, which today is seeing growth of only 2% year-over-year with a forecast of 3.6%, “the publication said.
It was previously reported that all of Ukraine’s economic achievements over the past 18 years could be lost if Russia’s aggression continues.
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Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.