<Anchor>



The World Bank has lowered its global economic growth forecast by more than 1% in five months.

It is analyzed that an increase in interest rates to catch inflation is one of the causes of a recession, putting a strain on the global economy.



Correspondent Kim Jong-won reports from New York.



<Reporter>



The World Bank has issued a warning that the global economy may fall into stagflation, which is stagnant while inflation is rising.



The World Bank's new forecast for this year's global economic growth rate of 2.9 percent, which is a 1.2 percentage point lower than the first five months since January, is the worst economic growth slowdown in 80 years, the World Bank explained.



Last year, the global economy rebounded significantly and grew by 5.7% as it emerged from the stagnation of the corona crisis.



The problem is that there are concerns that the recession will continue in the future.



If interest rates in the United States rise, Europe halts energy imports from Russia, and China's coronavirus lockdown continues, economic growth could drop further, from 3% to 1.5% next year.



[Aihan Kosse/Director of World Bank Economic Forecasts: The fact that the global economic growth forecast falls to the 1.5% point range means that we are facing a very serious economic downturn.]



However, the US interest rate hike is expected to continue for the time being.



US Treasury Secretary Janet Yellen appeared at a Senate hearing today (8th) to express concerns about US inflation.



[Janet Yellen/Secretary of the Treasury: We are currently in a macroeconomic crisis, including unacceptable levels of inflation.]



Secretary Yellen said that controlling inflation is the government's top priority, policy to support the Federal Reserve system, which is tightening fiscal policy. was necessary, suggesting that interest rate hikes will continue for the time being.