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Transition to Recession

In short, the domestic economy is not free from the impact of a world recession, although it will not be so significant. Economic growth can still be maintained in the range of 5 percent this year.

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History shows that global recessions have been preceded by these two symptoms: a global slowdown and the collapse of the world's major economies. Throughout 2022, the global economy has slowed down, particularly the economies of the United States, Europe and China. Fears of a global recession in 2023 are rising. That is one of the conclusions of a recent World Bank study entitled, “Is a Global Recession Imminent?”

The trigger for the recession is a simultaneous increase in interest rates in almost all countries to a magnitude that has not been seen in the last five decades. In the midst of high levels of government debt, this policy will cause an economic slowdown that has not occurred since the 1970s.