The world may encounter a global recession against the backdrop of the simultaneous increase in accounting rates by the central banks of many countries to combat constant inflation, the World Bank warned. This is reported by the British edition of The Guardian.
“The three largest economies – the USA, China and the Eurozone – sharply slowed down, and even” a moderate blow to the world economy over the next year can provoke its recession, “the bank reports.
The document also notes that the world economy is now in the sharpest slowdown after post -crisis recovery since 1970, and consumers’ trust has decreased more sharply than on the eve of previous global recesses.
“The global growth of the economy is sharply slowed down, and the further slowdown is likely as more and more countries are faced with a recession,” said World Bank President David Malpass, adding that he is concerned about preserving these trends with destructive consequences for countries with the emerging countries market and developing countries.
The report states that the global trend in raising interest rates will most likely continue next year, but this will not be enough to reduce inflation to the dopandemic level.
According to Malpass, against this background, world politicians should switch their attention from reducing consumption to an increase in production, including efforts to attract additional investments and increase performance.