World Bank warns of the global recession in 2023 amid an economic slowdown
According to media reports – a hike in interest rates by central banks around the world could lead to a global recession in 2023, warns the World Bank.
Raising interest rates to try to slow the pace of price increases makes borrowing more expensive. While it also makes loans more expensive, which also slows down economic growth.
The World Bank report comes ahead of monetary policy meetings of the US Federal Reserve and the Bank of England, which are expected to raise key interest rates next week.
According to a BBC report, the World Bank on Thursday warned that the global economy has been going through a rapid recession since the 1970s.
One study found that “the world’s three largest economies – the US, China, and the euro area – are rapidly heading into a recession.
The World Bank called on all central banks to coordinate their actions, make policy decisions, and reduce the need.
Inflation has reached 40-year highs in the US and UK in recent months.
The World Bank recommended that: “The Bank should tailor its policies to generate additional investment and improve productivity and capital allocation, which are critical to growth and poverty reduction.”
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