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“The world’s three major engines of growth — the United States, the euro area and China — are undergoing a period of pronounced weakness,” the World Bank said in its report.
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The global economy is just one more knock away from a second recession in the same decade, something that hasn’t happened in more than 80 years.
Whether the world falls into recession or not, the next 12 months are likely to be difficult.
“It remains a challenging backdrop,” said Guillaume Menuet, Citi Private Bank’s head of investment strategy and economics in Europe, the Middle East and Africa.
His team predicts the world will experience the slowest economic growth in the last 40 years, aside from 2020 and the 2007-2008 financial crisis.
Even if a global recession is averted, many countries could still endure downturns accompanied by painful rises in unemployment, though economists don’t agree on how severe and long they might last.
“The worst is yet to come, and for many people 2023 will feel like a recession,” the IMF said in October, noting the slowdown “will be broad-based” and may “reopen economic wounds that were only partially healed post-pandemic.”
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in absolute terms Britain remains a wealthy place: the sixth-largest economy in the world, though its G.D.P. is now smaller than that of India, its former colony