According to the UN news the world economy outlook is looking uncertain and darker as the economies of the United States, China and Europe are set to go through more hardships (higher inflation , lower employment rate, more instability in the stock market).
As most countries were coming out of successive lockdowns and trying to recover from the pandemic, the conflict between Russia and Ukraine came to worsen the already gloomy economic situation.
As a result we are assisting to continuous inflation;
Up to 9.8% in the EU from the beginning of the year 2022 according to Eurostat and 8.5% in the USA according to trade economics.
Subsquently a near drought across Europe has added to the chaotic energy situation, that is amplifying the cost of gas supply and inflation.
Although goverments are trying to control inflation and the hike in energy prices, through the manipulation of interests rates and subventions to keep the cost of energy as low as possible, International organisations such the IMF and economists are flashing red warning light about what could be the worst recession of the decade.
While Goldman Sachs Group is expressing a concern about the cost of living pressure in the UK, due to a persitent energy crisis, they are forecasting a recession in the 4th quarter of the year.
Some other economists revealed to CNBC that a US Recession will have a biggest hit on certain Asian countries, which they have found to be more vulnerable, due the proven correlation between their GDP and the US GDP.
Ex: Singapore and Thailand
The stock market and indices such S&P500 are not exempt of this cloudy economic situation, as we see indices and companies stock prices fall to their lowest level.
How bad do you think the world economy will be hit by the recession ?
