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The World Bank on Tuesday said the world is entering "a protracted period of feeble growth and elevated inflation," as it cut global growth forecasts by 1.2 percentage points to 2.9% for 2022. It had predicted growth of 4.1% in January.
The bank added that many countries are likely to face recession.
The bank blames the COVID-19 pandemic for most of the problem and said the Russian invasion of Ukraine is also a factor.
"The danger of stagflation is considerable today," World Bank President David Malpass wrote in the foreword to the report. "Subdued growth will likely persist throughout the decade because of weak investment in most of the world. With inflation now running at multi-decade highs in many countries and supply expected to grow slowly, there is a risk that inflation will remain higher for longer."
The bank thinks global growth will hover around 3% in 2023 and 2024, with inflation remaining high in many economies.
Growth in the U.S., the bank said, would only be 2.5% this year, down from 5.7% last year.
Europe would also see growth of 2.5% compared to 5.4% last year, the bank predicted.
China was expected to grow 4.3% this year, down from 8.1% last year, the bank said. It blamed the country's draconian COVID-19 lockdowns for the slowed growth.
Some information in this report comes from The Associated Press and Reuters.