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CEBR reports claim Global recession in 2023

TL; DR: After the trillion dollar achievement in 2022, the world descends into an economic recession as the year 2023 approaches.

With the economy around the globe facing several challenges to maintain a balance, the Centre for Economics and Business Research (CEBR) recently brought up another one.

The latest report claimed a global economic recession in 2023. This has been concluded as a result of the change in lending and borrowing levels instated by various countries across the world. The Forecasting head and director at CEBR said in an interview, “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.”

The CEBR’s first warning came in the month of October by issuing a statement as a sign of global recession was that 1/3rd of the global economy would decline with global GDP growing at less than 2%. On the other hand, the study stated that India would have a $10 trillion economy by 2035 with the chances of becoming the third largest economy by 2032.

The main point of the study was about the developing countries catching up to the already well-off nations and doubling the gross domestic product, with East Asia and Pacific regions producing more than 3/4th of the global output.

For the world economy, this was a surprising setback after its achievement of the $100 trillion milestone in the year 2022. The World Economic League Table stated that it would be difficult to carry forward this achieved standard with the rising prices that lay ahead of the economy.

As mentioned in the CEBR report, this world recession would be more severe than the one that the world saw during Russia’s attack on Ukraine because of the economic warfare between the money-bulked nations, China, and the West as a whole.The research was conducted on the changes in levels of growth, inflation and exchange rates which were produced by the IMF’s World Economic Outlook along with a self-made internal model which was studied as a demo structure.

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