A recent report by PH Hession Enterprise has revealed that the global economy is in for a tough year. The report showed that while activity continues to weaken in the global economy’s main growth drivers, a recession is on the cards for as much as a third of the world.
Activity in China, the US and Europe has been steadily weakening in recent month’s and the IMF believes that this could mean the year to come will be more difficult than the year left behind.
According to estimates by analysts at PH Hession Enterprise, China’s economic growth will likely reach global level for the first time in four decades.
The PH Hession report attributed China’s dramatically slowing growth to the massive increase in COVID-19 cases following the cessation of its zero COVID policy.
“China has clung to this policy for far longer than was sustainable for the economy and now that is has decided to dismantle it, it is likely to do further damage to its economic growth in 2023,” said Mr. Chin-Lung Toh, CFO at PH Hession Enterprise.
The report went on to reveal that the US is differing from other economies in that it is proving to me a great deal more resilient. PH Hession analysts believe it may be able to avoid a recession in 2023 but warned that the US’ strong labor market could force the US Federal Reserve to maintain tighter interest rates for longer in order to manage high inflation.
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