UN recently published a report which states clear warning signs of world heading towards recession.
Monetary policies in developed conuntries like US, UK and EU could further push the respective countries in a recession. In recent weeks US Fed has announced an interest hike. While the interest rates certainly help to counter the inflation but increasing significant rates abruptly could lead towards slowdown of the eocnomy leading towards stagnation.
Global slowdown will affect all regions but impact developing countries most
Report also talks about very servere impact on developing countries and could lead many them towards default as the economic damage from this crisis could conflict a lot more than 2008 crisis as well as Covid crisis in 2020. Sri lanka as an example had currency depreciated again USD in the first 7 months of 2022 to 77%.
UN has however warned to step back to avoid the recession world is heading towards. Report also emphasised the need of more pragmatic policies and specific measure. Few of the measure include tightening control of commodity prices speculation could be considered as few tangible measures to avoid the grim outcome.
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