Are we Headed for a Recession in 2023?
By BYJU'S Exam Prep
Updated on: September 13th, 2023
According to economists, the world is headed for a recession in 2023. The entire global economy was in a recession soon after the outbreak, but the global economy saw a slight rise and crossed the mark of $100 trillion for the first time in 2022. According to recent research, the world will see the start of a global recession in 2023.
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Global Recession 2023
Due to an expected rise in the interest rates, because of a rise in inflation, a recession is expected to come in 2023. There are chances that the world GDP will also grow by less than 2% in the upcoming year. With regard to India, according to a report, it has been predicted that India will become the third-largest economy by the year 2032 and a $10 trillion economy by 2035.
In economics, inflation (or, less frequently, price inflation) is the overall rise in an economy’s price level over time. Each unit of currency purchases fewer goods and services when the general price level increases; as a result, inflation reflects a loss of real value in the medium of exchange and unit of account within the economy.
Impact of Global Recession 2023
The impact of inflation is not felt uniformly throughout the economy.
- In the economy, unstated charges for various commodities and services are possible.
- Inflation rates that are sudden or unpredictable are alarming for the economy.
- They cause market instability, which makes it challenging for businesses to set long-term budgets.
- Because businesses must divert resources from producing goods and providing services to deal with inflation’s profit and loss scenarios, inflation can reduce productivity.
- The labour markets can attain equilibrium more quickly with moderate inflation.
Summary:
Are we Headed for a Recession in 2023?
Soon after the outbreak, the entire world economy experienced a recession but saw a rise in 2022. According to analysts, the Indian economy & world is now expected to witness a global recession in 2023. In the study of economics, inflation, or less frequently price inflation, refers to the general increase in prices within a country over time.
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