Fear of economic ‘lost decade’ hangs over world leaders in Washington

Tensions are rising, with rich nations furiously hiking interest rates to kill inflation but creating crushing debt burdens in the developing world.

Global finance ministers and central bankers will descend on Washington in the coming days amid economic turmoil that could tip the world into recession. And they will struggle to mount a coordinated response.

The war in Ukraine, stubbornly high inflation, rising interest rates, a fragile banking system and slower growth in China are all looming threats.

There are also growing tensions among nations, with wealthy countries furiously hiking interest rates to kill soaring prices but creating crushing debt burdens in the developing world. China is competing for influence with the U.S. and the EU, which are facing their own conflicts over trade. And Russia’s geopolitical role continues to sharply divide governments.

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