“The State of the Global Economy: Threats, Positives, and the Impact of Tightening Monetary Policy”

This is a dangerous time for the global economy as high inflation, bank failures and geopolitical tensions threaten to threaten economic growth. There are also some positives, with economic growth in China and India expected to reach around 5% and 6.5% this year, respectively. However, as the latest data from the Brookings-Financial Times Global Economic Recovery Monitor shows, rising risks and tighter financial conditions are weighing on business and consumer confidence and investment.

Inflation rates in major economies appear to have peaked as supply constraints ease, demand eases and some transitory conditions such as last year’s energy price spike fade. However, with inflation still above target, many central banks have no choice but to continue tightening monetary policy, even if it is not as aggressive as before.