MORE and more investors are worried about a sharp slowdown in the global economy as strong stagflation risk hammering growth, compounded by higher interest rates and tighter financial conditions. The pace of growth will be around 2.9% in 2023 to 2024 and many countries are likely to face recession, it added. It is not an easy task for the Fed to suppress inflation while averting a hard landing or recession. The 1981 to 1982 US recession was triggered by tight monetary policy in an effort to fight mounting inflation. The eurozone’s subdued economic growth in the first quarter of 2022 is leaning more to downside risks with a recession risk rising.
