GLOBAL ECONOMIC DOWNTHRUST
Economists suspect recession in 2023
Economies across the world have taken a beating since the turn of 2022, exacerbated by the Russia-Ukraine conflict, just as the world economy seemed to be recovering from the impact of the COVID-19 pandemic.
From the US to China to the UK to Europe and emerging markets, it has been a tale of decelerated or negative headline GDP growth, spiraling inflation, interest rate hikes by central banks, and overall cost of living crisis.
Major global financial institutions have cut their growth projections and economic experts are left guessing not just whether or not a major global economic crisis is in the offing in the coming year but how steep the downturn is likely to be.
The global economy continues to face steep challenges, shaped also by the cost-of-living crisis caused by persistent and broadening inflation pressures, and the slowdown in China.
The sad effects of this global crisis, as we've seen even in our recent reports, the inflation of gas in ambazonia leaving people to an alternative of charcoal,
in Nigeria: it’s inflation rate reached a 20 percent mark in August this year, reflecting the rising cost of living crisis facing Nigerian families and firms,
In China: Given its size, It is central to many regional and global development issues. But its financial crisis is getting worse. In this latest phase, Chinese banks anticipate huge loan losses, tapping China's bond markets for some 30 percent more funds than they did last year.
Bank of England has now urged lenders to do more to prevent market turmoil
The global crisis has affected almost every part of the world one way or another..
Increased poverty, Food shortages, Energy shocks, Debt crises, Inflation and so on... These and many more has been the adverse effect of the global economy’s further downturn this year
In September, the World Bank warned that as central banks across the world simultaneously hike interest rates in response to inflation, the world may be edging toward a global recession in 2023 and a string of financial crises in emerging markets and developing economies that would do them lasting harm.
And just last month, the International Monetary Fund (IMF) revised its growth forecasts, projecting that global GDP growth will slow from 6.1 percent in 2021 to 3.2 percent in 2022 and 2.7 percent in 2023.
The global growth forecast for this year for some researchers has been unchanged at 3.2 percent, while the projection for next year is lowered to 2.7 percent—0.2 percentage points lower than the July forecast.
The 2023 slowdown will be broad-based, with countries accounting for about one-third of the global economy poised to contract this year or next.
The three largest economies, the United States, China, and the euro area will continue to stall. Overall, this year’s shocks will re-open economic wounds that were only partially healed post-pandemic.
With these statistics some economists suspect 2023 will feel like a recession.
