The odds of the global economy entering a recession approaches 50 percent as central banks tighten monetary policy and weak demand for goods, according to both Citigroup and Deutsche Bank AG economists.
Experts from Citigroup observed that the supply shocks continue to drive up inflation and reduce growth, while central banks are aggressively raising interest rates and consumer demand for goods is dwindling.
Economists believe this is due to supply chain issues, which are exacerbating inflation and putting pressure on growth rates.
Citigroup still forecasts the global economy to grow 3 percent this year and 2.8 percent in 2023.
Similarly, the CEO of Deutsche Bank AG joined a growing group of executives and policymakers who paint a bleak picture, warning that the global economy may be heading for a recession as central banks step up efforts to curb inflation.
Christian Sewing said that the global economy is collapsing under multiple pressures, from supply chain issues in China to rising food prices, particularly in the poorest countries.
“At the very least, I would say we have a 50 percent chance of a global recession,” Sewing added.
