World Bank warns higher interest rates could trigger global recession
The Guardian says The world may be edging toward a global recession as central banks simultaneously raise interest rates to combat persistent inflation, the World Bank has warned.
The three largest economies, – the US, China and the eurozone – have been slowing sharply, and even a “moderate hit to the global economy over the next year could tip it into recession”, the bank said in a study.
It said the global economy was now in its steepest slowdown after a post-recession recovery since 1970, and consumer confidence had already dropped more sharply than in the run-up to previous global recessions.
“Global growth is slowing sharply, with further slowing likely as more countries fall into recession,” the World Bank president, David Malpass, said, adding his worry that these trends would persist, with devastating consequences for emerging market and developing economies.