Recession In Global Economy: In the new year 2023, the global economy may have to bear the brunt of the manner in which central banks around the world have made loans expensive by adopting a tough stance in monetary policy. RBI has said these things in its bulletin. According to the RBI, emerging economy countries may have to bear the brunt of the fall in currency, economic growth rate and back-breaking inflation as capital flows out of the country as they are going to be the most vulnerable.
The RBI has said in its bulletin that the crisis is getting bigger due to the increase in loan defaults and the strengthening of the US dollar. RBI believes that a mild recovery is expected in 2024. According to the bulletin, the emerging economies of Asia will become the engine of world growth. And collectively, nearly three-quarters of global growth in 2023 and nearly three-fifths in 2024 will be in Asia’s emerging economies.
In fact, from the US Federal Reserve to the Bank of England, the central banks of many developed countries are increasing interest rates to crack down on rising inflation. In which even RBI is not behind.
After a tremendous jump in the inflation rate in 2022, the RBI has increased the repo rate by 2.25 percent from 4 percent to 6.25 percent. After which commercial banks have made all types of loans expensive. From retail loan to corporate loan has become expensive.
His expert articles in the RBI Bulletin write articles on the economic situation in India and the world, which is issued by RBI every month.