India will benefit from the recession in 2023 - WEF report concludes

Davos – The World Bank and International Monetary Fund (IMF) have warned that the world will face a recession in 2023. There has been a new addition to these regular warnings of a global recession received at certain intervals. The World Economic Forum – WEF report also warned that a global recession would be this year. The WEF report noted that the world would face three challenges, food shortage, energy supply crisis and inflation. But India and Bangladesh will benefit from supply chain diversification on this front. Therefore, the report notes that India can benefit from this economic slowdown.

All major countries and multinational companies worldwide have realised that the economic recession crisis is on the horizon. Besides, the industry has adopted a cost-cutting strategy to deal with this crisis. Major countries also seem to take steps to keep in mind that a recession will come. Meanwhile, international organisations like the World Bank and the IMF have started saying that recession would be inevitable. Against this backdrop, the conclusion of the WEF report drew attention. The report has warned that the challenges on three fronts, such as food shortage, energy crisis and inflation, will have to be faced simultaneously and adversely affect the countries.

Most WEF economists believe that economic recession will be inevitable. The current geopolitical tensions around the world will shape the global economy in the future, and thus the US and European countries will adopt defensive fiscal policies. Moreover, the report has claimed that this will decrease the future economic development rate. WEF economists have been sharply divided on the future of China’s economy. Besides, some economists think that China’s economy will become increasingly weak. Conversely, some claim that China’s economy will again take off.

Moreover, the report drew attention to the fact that the inflation rate would differ in different places. The report says that the inflation rate in European countries will go up to 57%, and in China, inflation will only have an impact of five percent. However, while these challenges have been emerging globally, the report claims that the economic slowdown will not affect India and Bangladesh. While the international industry has been heavily dependent on the supply chain in China, India and Bangladesh have protected themselves from this crisis by diversifying their supply chains. Therefore, the WEF report says India can benefit from this economic slowdown.

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