(Morning News) The World Bank warns that the global economy may face economic recession caused by radical tightening policies in various countries next year, and this may still not be enough to suppress inflation.
Bloomberg reported that the World Bank's report released on Thursday (September 15) said that global decision makers are reducing currency and financial support for the synchronization level that has not been seen in the past 50 years, which will weaken this will weaken, which will weakenThe financial environment and exacerbation of the slowdown of global growth have exceeded the expected impact.
The World Bank estimates that the growth of GDP (GDP) will slow to 0.5%next year, and Per capita GDP shrinks 0.4%, which will meet the technical definition of global economic recession.
In order to maintain the core inflation rate at a level of 5 %, investors expect that in 2023, the global monetary policy interest rate will be increased to nearly 4 %, which is twice the average level of 2021.According to the model of the World Bank report, if the central bank wants to control inflation in the target range, the interest rate may be as high as 6 %.
The President of the World Bank Malpas said that as more countries have fallen into a recession, the global economy may slow down. He is worried that such a trend will continue andThe people have long -term devastating consequences.
