1) World Bank cuts global growth to 2.9%
The World Bank cuts global growth forecast in 2022 to 2.9% from April’s 3.2%, saying that the danger of stagflation is considerable today while adding that energy and food prices have been rising around the world.
World Bank President David Malpass said that the risks of stagflation, the Russia-Ukraine war, and lockdowns in China have been hammering economic growth, which will lead to a recession that will be hard to avoid for many countries.
The president noted that global inflation is expected to moderate next year, it will likely remain above target in many economies.
2) US GDP tracker points to slow economic growth in 2Q22
The Atlanta Fed’s GDPNow tracker, a widely followed Federal Reserve gauge among economists and investors, indicated a gain of only 0.9% annualized growth for the U.S. economy in 2Q22.
The development is close to a recession, following a contraction of 1.4% of the U.S. economy in 1Q22.
Earlier, the World Bank also cut U.S. GDP growth in 2022 to 2.5% from 3.7%.
3) Hang Seng Tech surges 3.5% after relaxing moves on gaming industry by regulators
Hang Seng Tech gained 3.5% in the morning session as China’s gaming regulators granted publishing licenses to 60 games. The move is considered a relief to the sector, specifically gaming industry, bruised by a regulatory crackdown and a lengthy suspension of gaming approvals.
Last year, China implemented new rules limiting gaming hours of children to three hours of online game playing a week between 8 p.m. and 9 p.m. on Friday, Saturday and Sunday.