World could face recession next year: World Bank report

The world could face a recession next year amid simultaneous tightening of monetary policy by central banks around the world, the World Bank has said in a new report that called for boosting production and removing supply bottlenecks to ease inflation.

Several indicators of global recessions are already “flashing signs”, the report said. The global economy is now in its steepest slowdown following a post-recession recovery since 1970, it added.

 

Global interest rate hikes by central banks could reach 4%, double that in 2021, just to keep core inflation -- which strips out volatile items such as food and fuel -- at 5% levels, the bank said.