There may be a recession in the world next year. The World Bank has said in its new report that amid tightening monetary policy by central banks around the world, there is a need to increase production and remove bottlenecks on the supply front to control inflation.
There may be a recession in the world next year.
There may be a recession in the world next year. The World Bank has said in its new report that amid tightening monetary policy by central banks around the world, there is a need to increase production and remove bottlenecks on the supply front to control inflation. It has been said in the report that some signs of global recession are already being received. It further states that the global economy has now reached the biggest decline since the recession in the year 1970.
Rising interest rates around the world cause for concern
The interest rate hike by central banks can reach 4 per cent, which is double compared to the year 2021. This will keep inflation under control. The World Bank said that the target is to keep food and oil inflation at 5 percent.
From America to Europe and India, all countries are increasing interest rates aggressively. The motive behind this is to help bring down inflation by controlling the supply of cheap money. But such strict monetary measures have a price. This affects the investment, there is a fear of losing the job. And growth also comes down. Most of the countries are passing through this difficulty, including India.
Global growth slowed down
World Bank President David Malpass said in a statement after the release of the report on Thursday that global growth is slowing rapidly. It is expected to decline further as more countries go into recession. He said that his deep concern is that this trend will continue, with long-lasting consequences, which will be very harmful for emerging markets and people living in developing countries.
The world is facing record inflation for many reasons, including the Ukraine war. This has brought disruptions in the supply of food. Apart from this, the epidemic has also had an impact on the supply chain. Demand in China has been poor due to the Corona lockdown and bad weather has also hurt agricultural output estimates.