World’s economic outlook uncertain with stagflation threatening
Friday 22 October 2021 – Vol.12 Ed.42.5
Commentary: Repeat of 70s in store as UK heads towards stagflation
By Brian Reading in London
Timelines differ, but similarities with the 1970s point to a potential return of stagflation. For years wages have barely kept pace with prices and real wages stagnated. Cheap labour is no more. The pandemic savaged real gross domestic product. If, and when, GDP recovers to its 2019 level, there will still be permanent losses unless growth accelerates. Coming from distorted markets and bloated asset prices, a financial crisis greater than 2008 threatens.
Read the full commentary on the website.
Video: Discussing the updated IMF World Economic Outlook and Global Financial Stability Report
Following the IMF/World Bank fall meetings, Mark Sobel, OMFIF’s US chair, is joined by Fabio Natalucci, the IMF’s deputy director of the monetary and capital markets department, and Petya Koeva Brooks, director in the IMF’s strategy, policy, and review department. They discuss the Fund’s latest Global Financial Stability Report and World Economic Outlook, their own outlook for the global economy as well as the potential ways forward for 2022.