Many of the world’s biggest economies are either in a recession or about to face an economic downturn.
The UK government recently confirmed that the British economy is in a recession. Officials warned that the recession could last a year and bring unemployment to 4.9%.
Japan, the world’s third-largest economy, is worried that it might be slipping into a recession after annualized gross domestic product (GDP) growth was -1.2% in the previous quarter and -0.3% month-over-month. Higher inflation, a weaker yen, and easing exports have weighed considerably on the nation.
In the United States, economic conditions are deteriorating, even as inflation improves. The housing market is collapsing, while industrial and manufacturing production rates were abysmal. The Philadelphia Fed Manufacturing Index worsened to -19.4%.
Overall, the effects of the central banks’ tightening crusade are affecting the U.S. and global economies.
But will this be a soft and shallow recession or will this be a financial crisis?
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