The World Bank lowered the global growth forecast to 2.9 percent for this year

FILE PHOTO: Stacked containers are shown as ships unload their cargo at the Port of Los Angeles in Los Angeles, California, US November 22, 2021. REUTERS/Mike Blake/File Photo (MIKE BLAKE/)

The world Bank (BM) lowered this Tuesday the global growth forecast to 2.9% and warned that war in Ukraine, high prices and supply chain problems could lead to stagflation: high inflation coupled with very weak growth.

In its updated report Global Economic Perspectives, published this Tuesday, the World Bank lowered its growth forecast by 1.2 points compared to what was projected in January, when it placed it at 4.1%.

The world economy is expected to experience its biggest slowdown after a recovery … in more than 80 years”, said the entity on Tuesday in its report World economy perspectives.

The result is a growing risk of stagflation”, he added.

The main new element in the Bank’s forecasts is the war in Ukraine, which began in late February and is having many effects on the world economy: higher commodity prices, more supply chain problems and greater uncertainty, among others.

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