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The global economy may face a recession next year caused by an aggressive wave of policy tightening that could yet prove inadequate to temper inflation, the World Bank said in a new report.
ANKARA - The global economy could soon face a recession due to central banks' monetary tightening and rising interest rates, the World Bank said in a report on Thursday. "Experience from earlier recessions suggests that at least two developments which either have already materialized in recent months or may be underway heighten the likelihood of a global recession in the near future," said the report titled "Is a Global Recession Imminent?" The World Bank said every global recession since 1970 was preceded by a significant weakening of global growth in the previous year, which has happened recently, while all previous global recessions coincided with sharp slowdowns or outright recessions in several major economies. "Despite the current slowdown in global growth, inflation has risen to multi-decade highs in many countries . many countries are withdrawing monetary and fiscal support. As a result, the global economy is in the midst of one of the most intern