The world moving towards recession, rising interest rates and forced labor worsened the situation
It has been said in the survey that the period of recession may be short and its effect may also be slightly less in major countries, but such a quick relief from inflation. Inflation is expected to remain higher than expected.
The threat of recession looms large over the world
The world economy is going towards recession. Indications of this have been found in a survey of ‘Reuters’. The world’s major economies in the survey growth rate is shown to decrease as compared to earlier. on the other hand Dearness Central banks are continuously increasing interest rates to reduce the Its worst effect is being seen on the growth rate. Some countries have gone into recession or are rapidly moving towards recession because the employment rate is being seen very low. In the survey of ‘Reuters’, it has been estimated that the growth rate and Unemployment rate The gap between
It has been said in the survey that the period of recession may be short and its effect may also be slightly less in major countries, but such a quick relief from inflation. Inflation is expected to remain higher than expected. The world’s central banks are increasing interest rates to curb inflation and have increased by two-thirds of the limit. But the expectation with which the interest rates are being raised does not seem to be getting the full benefit as the effect remains the same.
What do economists have to say
Economists believe that to reduce inflation, central banks can set a target of increasing interest rates by next year. The opinion of a total of 22 central banks was known in the survey, out of which only six banks will be able to meet the inflation target by next year. A similar survey was conducted in July in which two-thirds of the 18 banks had projected their targets to be met. But now only 6 out of 22 banks are said to be included in this list.
Why is the situation getting uncontrollable
The situation is also seen to be uncontrollable because there is turmoil in the global equity and bond markets, while on the other hand the US dollar is being seen at several year highs. The dollar has also left behind the US rate estimates in the foreign exchange market. Many currencies of the world seem to be collapsing in front of the dollar. Out of 257 economists surveyed, 179 economists believe that the coming year will see a sharp increase in unemployment and it can go down drastically.
According to a Reuters poll of economists covering 47 major economies, global growth is expected to be 2.3 percent this year in 2023, up from 2.9 percent earlier. However, after this this rate will go up to 3.0 percent in 2024. More than 70 percent of economists said the situation in the economies they cover would get worse in the next six months. The remaining 64 have expressed hope of improving it.
