According to the Center for Economics and Business Research, the world will face a recession in 2023. The global economy crossed $100 trillion for the first time in 2022, but may stall in 2023.
Daniel Neufeld, director and forecasting head at CBIR, said, “It is likely that the world economy will go into recession next year due to higher interest rates in response to higher inflation. The fight against inflation has not been won yet.
India will become the third largest economy of $ 10 trillion in 2035 and the third largest in the world by 2032. At the same time, it will take 6 more years for China to become the world's largest economy. Earlier it was expected to become the largest economy by 2036, but now it may take up to 2042. According to the report, due to China's zero covid policy and trade tension with western countries, its development has slowed down.
The report also states that the world's GDP will double by 2037 as developing economies catch up with the rich. The changing balance of power will see East Asia and the Pacific region account for more than a third of global output by 2037, while Europe's share will drop to less than a fifth.
At the beginning of a recession, as companies face low demand, declining profits, and high debt, many companies begin laying off employees in order to cut costs. Rising unemployment is one of the many indicators that define a recession. In a recession, consumers spend less and industrial production slows down.
