Global economy facing the toughest challenges in four decades

Washington: The global economy has faced the toughest and most complex challenges in the last four decades. Former US Treasury Secretary Larry Summers warned that the World Bank, IMF and leading central banks failed to recognize these dangers. Meanwhile, the US study group ‘The Conference Board’ has released a report saying that the world’s leading companies are convinced that economic recession is coming and more than 90% of the companies have started preparing for it.

Over the past month, the world’s leading economists, analysts, financial institutions and think tanks have consistently pointed to a possible global economic slowdown. Some experts have said that the major economies of the world, including the United States and Europe, are already in recession and accused the countries and their leaderships of not being willing to accept the situation. Summers, former US Secretary of Treasury, is one of them and has consistently criticized US President Biden’s economic policies. Earlier, the former Secretary of Treasury had also alleged that the US economy was in crisis due to Biden’s decisions.

Moreover, Summers pointed out that the global economy is in crisis in the program of the ‘Institute of International Finance’ program. He also accused the world’s major financial institutions and central banks are responsible for this. Summers pointed to the danger of recession, saying that the toughest and most complex challenges in the last 40 years have been posed in front of the global economy. He further stated that he had never seen such serious challenges facing the economy in his life. The world’s leading financial institutions and central banks are also responsible for the state of the economy becoming so critical. They ignored the dangers of inflation and did not respond properly to the crisis.

Furthermore, by comparing the threat of recession to a fire, he put global leadership and institutions on edge, saying that the fire brigade needed to douse the fire was not yet out. Meanwhile, the US study group ‘The Conference Board’ claimed that the leading global companies are aware of the recession and have started preparing for it. The study group, spread across 60 countries around the world, approached the CEOs of major companies and presented the new report. According to this report, more than 90% of the world’s CEOs expressed the opinion that a recession will hit the United States and the European Union.

The CEOs said that there would be an economic recession in the United States and Europe in the coming year and major companies have started planning strategies for it.