Daily Management Review

CEBR: World economy will enter recession in 2023


The way that various central banks are battling growing inflation, according to analysts at the Center for Economic and Business Research (CEBR), indicates that the global economy is likely to be in recession the next year.

According to a report by the British think tank, "it seems likely that the world economy will experience a recession next year as a result of rising interest rates in response to higher inflation." "The fight against inflation is still ongoing. Despite the negative economic effects, we anticipate central banks to use the same strategies in 2023. A deterioration of the outlook for future economic development is the cost of bringing inflation down to more manageable levels."

The International Monetary Fund previously estimated that there is a 25% risk that the world economy will experience a recession in 2023, with the recession affecting around a third of the global economy.

In addition, CEBR forecasts that the growth of developing economies would cause the global GDP to double from this year by 2037, when the company's analysts typically make predictions for the following 15 years. Meanwhile, the revised forecast states that China will, at best, surpass the United States in terms of GDP denominated in US dollars in 2036.

source: cebr.com