The world will enter a recession in 2023 as higher borrowing costs to combat inflation caused a number of economies to contract, according to the Centre for Economics and Business Research (CEBR).
The global economy surpassed USD 100 trillion for the first time in 2022 but will stall in 2023 as policymakers fight rising prices, according to the British consultancy’s annual World Economic League Table.
“The world economy is likely to enter a recession next year as interest rates rise in response to higher inflation,” said Kay Daniel Neufeld, director and head of Forecasting at CEBR.
“The battle against inflation is not yet won,” according to the report. Despite the economic costs, we expect central bankers to stick to their guns in 2023. The cost of lowering inflation to more manageable levels is a weaker growth outlook for the next few years, the report added.
The findings are more pessimistic than the latest…