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Amid concerns that inflation will rise and the economy will stagnate, the World Bank and OECD have lowered their growth forecasts significantly.
Korea is bound to be directly affected right now, and what is more worrisome is that there is a forecast that this trend will continue until next year.
Correspondent Jo Ki-ho.
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U.S. retailers competed for a discount event this month.
It is normal to raise the price since the price has risen to the 8% level, but it is considered that it is urgent to reduce the accumulated inventory even if it is sold at a low price now.
As consumers cut back on spending, they predict a recession will come.
The OECD lowered its global growth forecast for this year by 1.5 percentage points from seven months ago and the World Bank lowered it by 1.2 percentage points from five months ago.
It is said that variables such as the Ukraine crisis and China's coronavirus lockdown have had a negative impact on the economy than expected.
The average price of OECD countries is expected to jump 8.8% this year and 6% next year, so the world will suffer from high inflation.
In particular, the World Bank diagnoses that it is facing the risk of stagflation, where prices are rising and falling into a recession at the same time.
The rate of global economic growth will decline by 2.7 percentage points by 2024, which is twice as severe as during the infamous oil shock of the 1970s.
Although it is predicted that Korea's growth rate will be lower than that of other developed countries, it cannot be free from crisis.
[Ha Jun-kyung / Professor of Economics, Hanyang University: It is not a situation that meets the requirements for stagflation, but a kind of slow inflation.
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The World Bank has ordered the world to overcome the crisis by maintaining production and lowering trade barriers, but there is also a trend to strengthen protectionism, so a joint response is not easy.