Why Countries Are Facing Recession in the Current Climate
A recession is a period of negative economic growth, usually defined as two consecutive quarters of decline in gross domestic product (GDP). A recession can have serious and lasting effects on employment, income, consumption, investment, and social welfare. The global economy is currently facing a high risk of recession, as many countries and regions are experiencing a slowdown in economic activity. According to the World Bank, the world economy is expected to grow by only 1.7% in 2023, the slowest pace since 1993, except for the global financial crisis and the acute phase of the COVID-19 pandemic. The main factors behind this gloomy outlook are the ongoing war in Ukraine, which has disrupted trade and increased geopolitical tensions, the resurgence of the COVID-19 pandemic, which has imposed new restrictions and uncertainties, and the rising inflation and interest rates, which have reduced consumer and business confidence and spending.In the wake of recent global events, countries wor