​ In 2023, the global economy faced a number of challenges that increased the risk of a
global recession. According to a World Bank study, the simultaneous increase in interest
rates by central banks to fight inflation could have brought the world closer to recession and
triggered financial crises in developing countries.
Regional challenges:

• United States: Aggressive interest rate hikes by the Federal Reserve to curb inflation have
  raised fears of a possible downturn in the US economy.
• Europe: The energy crisis caused by geopolitical tensions has led to higher energy prices
  and inflation in the euro area. In October 2022, inflation in Germany reached 11.7%, the
  highest level since 1951.
• China: The slowdown in economic growth due to problems in the real estate market and
  the effects of the “zero COVID” policy have raised concerns about the stability of the world’s
  second largest economy.
  Forecasts and estimates:
  In December 2022, the Center for Economic and Business Research (CEBR) predicted that
  the global economy would face a recession in 2023. At the same time, some analysts
  believed that a global recession could be avoided, but the world would likely experience
  significantly lower growth rates of about 2.1% in 2023.