It is not possible for us to predict whether a global recession will be extremely likely in 2023, as economic conditions and market forces can change rapidly and unpredictably. However, there are certain factors that could contribute to a global recession, such as a significant downturn in the global economy, a significant increase in interest rates, or a major geopolitical event.
A global recession is defined as a period of negative economic growth that lasts for at least two consecutive quarters, and it is characterized by declining GDP, rising unemployment, and falling consumer and business confidence. A global recession could have a wide-ranging impact on the economies of countries around the world, as well as on individuals and businesses.
There are several potential factors that could contribute to a global recession in 2023. One of the main factors is the ongoing impact of the COVID-19 pandemic, which has had a significant impact on the global economy, resulting in widespread job losses and economic downturns. Additionally, the end of the pandemic may also lead to a recession as the stimulus measures will be withdrawn and the governments will face a debt crisis.
Another potential factor is the rising interest rates, which can make it more expensive for businesses and consumers to borrow money, resulting in a slowdown in economic activity. Additionally, geopolitical events such as trade tensions, political instability, and rising global debt levels could also contribute to a recession.
It is also important to keep in mind that recessions are a normal part of the business cycle, and economies have the capacity to recover. Central banks and governments have tools such as monetary and fiscal policies that they can use to mitigate the impact of a recession.