Spectre of recession facing the world

The supply side bottlenecks due to Russia/Ukraine war along with rising interest rates has the potential to adversely impact the global GDP growth rates for 2022/2023. This is also reflected in IMF revising down GDP growth estimates for countries across the globe. The European countries have already been hit hard due to erratic supply of gas from Russia. It is to be noted that European countries on average depend on Russia for 40% of their natural gas supply. 

Already, the world is facing shortage in supply of agricultural products especially wheat as Ukraine which is a major exporter of wheat globally has been hit badly in the war against Russia.

The rising interest rates by central banks globally has the potential to slow down investment activity. Also, its impact can be seen in slowing growth of mortgages in the US. Also, it can impact the capex plans of corporates globally.

The world economy is in very fragile situation currently and  a concerted effort need to be put in to protect the global economy from slipping into prolonged low growth phase as it can impact poverty alleviation efforts in Africa and Asia.