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World Bank's Gill worried about 'generalized stagflation' in global economy

WASHINGTON (Reuters) -World Bank Chief Economist Indermit Gill on Thursday said he was concerned about "generalized stagflation," a period of low growth and high inflation, in the global economy, noting the bank had pared back forecasts for three-fourths of all countries.

Gill, who took over his new role on Sept. 1, told reporters at a briefing in Washington that the war in Ukraine and the spillover effects had changed the outlook significantly.

"Six months ago we were really concerned about a slowing recovery and very high prices of some commodities, and now I think we are much more concerned about a generalized stagflation, which brings back really bad memories of the mid-1970s and the lost decades," he said.

Gill said the current world was more polarized, a growing number of middle-income countries were running into trouble, and many countries were saddled with high debts.

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The current situation has brought the "glory days" of reducing poverty worldwide from around 1990 to 2021 to a halt, he said. "Poverty reduction has dropped."

(Reporting by Andrea Shalal; Editing by Mark Porter and Paul Simao)