The world’s major economies are staring at a recession, and analysts warn that the global economy may plunge into a severe contraction in the next 12 months. At the beginning of 2022, when major economies were softly recovering from the three consecutive Covid waves, the Russian-Ukraine war erupted, sending commodity and food prices to record highs. As the battle wore on, economists warned of the possibility of a recession.
Despite global uncertainties, the equity markets continued to rise, with speculation serving as the main engine of the rally. Investment bankers and fund managers are increasing their investments in equities in the hope of profiting from higher prices when the recession hits.
Meanwhile, a new Bloomberg Economics model projects a 100% probability of a recession in the US by October 2023. That compares with a 65% probability in Bloomberg’s prior forecast. The increased probability arises as the economic and…
