Six major economies will join the United States in falling into recession in the coming year, according to economists.
The euro area, the U.K., Japan, South Korea, Australia, and Canada are expected to also see economic growth contract in the coming months. Tightening monetary policy, hyperinflation, consumer confidence, and worsening financial conditions are the main reasons for the downturn.
Furthermore, the world economy’s “synchronized growth slowdown” means that countries won’t be able to rely on exports to pull them back into expansion.
China, the world's second-largest economy, may avoid another economic contraction after emerging from one in the second quarter of this year. But massive defaults in the Chinese housing sector are putting extreme pressure on the country.
Economists predict these slowing economic conditions for Canada and the US to take hold in the fourth quarter of this year. Buckle up.