- Stagflation and recession are words we’re hearing a lot.
- But what do they mean, what are the odds, and which is worse? Should I worry?
- Both are bad, but there are steps to consumers can take now to mitigate the pain.
Stagflation and recession are increasingly being used to describe where the economy might be headed. The World Bank warned on Tuesday that global economies were at risk of stagflation, if not recession.
“The world economy is again in danger,” David Malpass, president of the World Bank, said in the latest edition of the Global Economic Prospects report. “It is facing high inflation and slow growth at the same time. Even if a global recession is averted, the pain of stagflation could persist for several years – unless major supply increases are set in motion.”