Economic Anxiety Spreads: Is the World in Recession?
Germany, the largest economy in Europe and the fourth-largest economy globally, has recently entered a asstate of recession.
Interestingly, despite this development, a significant number of people worldwide already perceive their own economies to be in a recessionary state.
A recent survey conducted by Ipsos, encompassing 29 countries, revealed that concerns about recession are much more widespread than actual instances of recession. In fact, only Germany and Hungary have officially declared their entry into a recessionary phase.
A recession is typically defined as a contraction in an economy for two consecutive quarters.
The Financial Times reported that over half of the respondents from 26 countries believed that their respective nations were experiencing a recession. Conversely, only a quarter of participants in these countries felt that their economies were safe from recessionary pressures.
Surprisingly, despite South Korea managing to avoid a recession in the first quarter of 2023, around 80% of individuals surveyed in the country were convinced that they were currently in a recessionary period.
In the United Kingdom, 46% of survey respondents believed that their country was in a recession, despite the economy actually growing by 0.1% in the first three months of 2023.
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On the other hand, in The Netherlands, Australia, and Singapore, a higher proportion of people expressed confidence in their economies’ resilience against the threat of recession.
The Ipsos survey also highlighted inflation as a major concern, with approximately 63% of respondents across the 29 countries expecting inflation to rise in the coming year.
According to the survey, most respondents believed that it would take at least a year for inflation to return to what they considered “normal” levels, with 46% indicating that it would be at least 12 months before such normalization occurs.
While the outlook for the global economy remains bleak in 2023, the International Monetary Fund (IMF) has projected that most economies will avoid entering a recession this year, despite existing economic and geopolitical concerns.
During an April 2023 press briefing, IMF Chief Economist Pierre-Olivier Gourinchas stated that the global economy is recovering from recent shocks, including the pandemic and the Russian invasion of Ukraine.
The IMF expects the world economy to grow by 2.8% this year, although about 90% of advanced economies are anticipated to experience a slowdown in their growth rates.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
