Global recession likely in 2023

The rise in inflation at this time was driven by both an OPEC-triggered supply shock, which forced oil prices sharply higher, coupled with demand-side inflation propagated by excessively easy fiscal and monetary policy. If the global economy goes into recession, it will be the sixth time this has happened since World War II and history implies that these contractions tend to be dominated by weakness in the US and Europe. The spectre of a recession is not, however, dissuading central banks from lifting interest rates aggressively because they are actively seeking to raise unemployment rates, slow-down wage growth and aggregate…