World economy is headed for a recession in 2023, researcher says | Business

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The world faces a recession in 2023 with higher borrowing costs aimed at tackling inflation causing a number of economies to contract, according to the Centre for Economics and Business Research. | News24_Business

The Centre for Economics and Business Research warned that the world faces a recession in 2023. Photo: iStockThe global economy surpassed $100 trillion for the first time in 2022 but will stall in 2023 as policymakers continue their fight against soaring prices.

"It's likely that the world economy will face a recession next year as a result of the rises in interest rates in response to higher inflation," said Kay Daniel Neufeld, director and head of Forecasting at CEBR. The CEBR takes its base data from the IMF's World Economic Outlook and uses an internal model to forecast growth, inflation, and exchange rates.

"The consequences of economic warfare between China and the West would be several times more severe than what we have seen following Russia's attack on Ukraine. There would almost certainly be quite a sharp world recession and a resurgence of inflation," CEBR said.

 

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_Business I cant understand how you curb inflation by putting up intrest rates if the cause of inflation in not cause by consumers but governmant over spending and high energy prices not driven by consumers but by a senseless war and stupid energy policies

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_Business Ghana has already started not paying the international loans....the terms are just too exhausive...most African countries are expected to follow suit by 2025...

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_Business A business can not borrow for inflation really, accept those online loans that gets automatically approved might slip past the loans clerk.

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First three months of 2023 will be difficult, warns Eskom | BusinessBeleaguered electricity firm Eskom warned South Africans on Friday to brace for a prolonged electricity crisis as it struggles to power up the continent's most advanced economy. | News24_Business _Business Like the last three months or even worse _Business What a fabulous Christmas story. Keep up the good work News24. _Business However, from March it will be back to Normal.... No?
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