Jakarta –
The World Bank or the World Bank have said that many countries will fall into the abyss next year recession. In response to this, CELIOS director Bhima Yudhistira Adhinegara said it was not just a projection because the economies of several large countries had slowed down.
“This is not just a forecast, but it happened to the United States (USA), which is bad, this reflects a recession in developed countries,” Bhima said when he was contacted on Friday (9/16/2022).
Bhima said the European Union is currently under pressure on economic growth. Especially with the energy crisis and the food crisis so that the cost of living for people continues to rise.
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This happened due to the Russian invasion of Ukraine which disrupted supply chain disruptions and caused hyperinflation, stagflation and a cost of living crisis. “This is all combined and depressing,” she explained.
The World Bank report states that there has been a slowdown in the economies of the United States, China and the European Union. Currently, the global economy is experiencing the deepest slowdown in the world recession since 1970. Furthermore, the consumer confidence index has also decreased.
World Bank President David Malpass is concerned that this downward trend will continue and affect developing countries. The World Bank expects ongoing rate hikes globally to continue into the next year, but may not be enough to bring inflation back to pre-COVID-19 levels.
“Unless supply disruptions and labor market pressures ease, the global core inflation rate excluding energy could remain around 5% in 2023, almost double the five-year average before the pandemic,” has explained.
To reduce inflation, the World Bank considers it necessary to raise interest rates by a further 2%, even if the risk is a global economic growth of 0.5% in 2023, or a contraction of 0.4% per capita and will meet the definition recession technically global.
(kil / arabic)
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