The global economy is likely to face harsh times. Many admit the silver lining is hard to be seen in the looming clouds of economic collapse even if all negative factors disappear at once. The world prepares for the worst scenarios. However, economists outline four main issues that aggravate the global economic crisis. Firstly, the spread of the Omicron strain forced the Chinese government to impose strict lockdowns that crippled China’s GDP growth. Secondly, the Fed’s monetary policy may cause a recession in the US. In addition, EU households struggle with soaring prices. According to economists, the situation in many developing countries is even worse because they are facing a food crisis. Robin Brooks, a chief economist of the Institute of International Finance, says that the world is on the verge of recession, and this time the threat is real. According to him, these crises are already revealing the disastrous state of the world economy. Earlier, head of Citigroup Bank Jane Fraser predicted difficult times for the European economy falling into a long recession.
