(Morning News) The British Think Tank Economic and Commercial Research Center (CEBR) said that the global economy will face decline in 2023, mainly due to the rise in borrowing costs to respond to inflation, causing shrinkage of multiple economies.

Bloomberg reported that CEBR pointed out in the latest World Economic Ranking Report that the global economic scale exceeded $ 1 million (about S $ 135 trillion) for the first time in 2022, but because the decision makers continue to face the curbing high inflation, the decision maker continues to curb high inflation.Challenge, the global economy in 2023 will stagnate and is likely to fall into recession.This is because countries have raised interest rates to cope with higher inflation.

Researchers predict that the central bank governors of various countries will persist in raising interest rates regardless of economic costs in 2023, and reduce inflation to a more comfortable level, that is, the economic growth prospects in the next few years will be worse.

CEBR's survey results are more pessimistic than the latest forecast of the International Monetary Fund (IMF).IMF warned in October that one -third of the global economy in 2023 will shrink, and the probability of growth rate of GDP GDP (GDP) is below 2%.

Even so, it is expected that by 2037, as the developing economies catch up with the developed economies, global GDP will double.At the same time as the economic development pattern has changed, by 2037, East Asia and the Pacific region will account for more than one -third of the global output, and the proportion of Europe will drop to less than one -fifth.

The basic data of

CEBR comes from the world economic outlook of IMF, which predict growth, inflation and exchange rates through internal models.

China is expected to surpass the United States at least 2036, becoming the world's largest economy, which is six years later than expected. It is mainly affected by China's dynamic clearance policy and the heating up with Western trade tensions.

CEBR said: "The consequences of China and the Western Economic War will be better than Ukrainian war.The consequences of are several times the consequences, and it is almost certain that the world economy has declined and inflation will occur. This will be much larger to China. In addition, China's hope of leading the world economy will be disrupted. "