World economy to experience recession in 2023, says Centre for Economics and Business Research

According to the Centre for Economics and Business Research, the world will experience a recession in 2023 as a result of rising borrowing prices intended to combat inflation. According to the British consultancy’s annual World Economic League Table, the global economy passed the $100 trillion mark for the first time in 2022 but will stagnate in 2023 as policymakers continue their fight against rising prices. “It’s likely that the world economy will face 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 report added that, “The battle against inflation is not won yet. We expect central bankers to stick to their guns in 2023 despite the economic costs. The cost of bringing inflation down to more comfortable levels is a poorer growth outlook for a number of years to come.” In comparison to the most recent IMF forecast, the findings are pessimistic. IMF issued a warning in October stating that more than a third of the world’s economies will contract and that there is a 25 per cent possibility that in 2023, when the global GDP will expand by less than 2 per cent, there will be a global recession. As developing economies catch up to the wealthier ones by 2037, the global GDP will have doubled. By 2037, the East Asia and Pacific region would account for over a third of global output, while Europe’s contribution will fall to less than a fifth due to the altering power dynamics. 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. Read all the Latest News , Trending News ,  Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.