World economy is headed for a recession in 2023, says researcher

The world faces a recession in 2023 higher borrowing costs aimed at tackling inflation cause a number of economies to contract, according to the Centre for Economics and Business Research. That institution warned in October that more than a third of the world economy will contract and there is a 25% chance of global GDP growing by less than 2% in 2023, which it defines as a global recession. The CEBR takes its base data from the IMF’s World Economic Outlook and uses an internal model to forecast growth, inflation and exchange rates. There would almost certainly be quite a sharp world recession and a resurgence of inflation," CEBR said. “But the damage to China would be many times greater and this could well torpedo any attempt to lead the world economy."