Recession vs resilience in global economy outlook

WASHINGTON: The fastest inflation in decades and the resulting rush by central banks to raise interest rates are stoking recession fears in financial markets – worries that are being compounded by the impact of aggressive coronavirus lockdowns in China and the war in Ukraine.

In the last week alone, the United States and the United Kingdom logged inflation accelerating the most since the early 1980s and the central banks of Canada and New Zealand provided a model for the Federal Reserve (Fed) and others by hiking rates 50 basis points for the first time in 22 years.