The world faces a recession in 2023 with higher borrowing costs aimed at tackling inflation causing a number of economies to contract, according to the Centre for Economics and Business Research. | News24_Business
The Centre for Economics and Business Research warned that the world faces a recession in 2023. Photo: iStockThe global economy surpassed $100 trillion for the first time in 2022 but will stall in 2023 as policymakers continue their fight against soaring prices.
"It's likely that the world economy will face a recession next year as a result of the rises in interest rates in response to higher inflation," said Kay Daniel Neufeld, director and head of Forecasting at CEBR. The CEBR takes its base data from the IMF's World Economic Outlook and uses an internal model to forecast growth, inflation, and exchange rates.
"The consequences of economic warfare between China and the West would be several times more severe than what we have seen following Russia's attack on Ukraine. There would almost certainly be quite a sharp world recession and a resurgence of inflation," CEBR said.
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