Here is what might tip the worldwide financial system into recession in 2023

Here's what could tip the global economy into recession in 2023



The global economy has endured a tough year, with decades-high inflation sapping post-lockdown spending and pushing central banks to hike borrowing costs at an unprecedented clip to bring it under control.

Their campaign to manage prices may be working — but potentially at a sizable cost in 2023.

“It is likely that the world economy will face recession next year as a result of the rises in interest rates in response to higher inflation,” Kay Daniel Neufeld, director and head of forecasting at the Center for Economics and Business Research, said this week.

Not everyone agrees the global economy is heading for a recession. Yet with growth expected to slip even lower after a sharp slowdown in 2022, it’s a possibility.

The International Monetary Fund projected in October that global growth will fall to 2.7% in 2023. Excluding the global…