Goldman Sachs: No major world economy will enter recession in 2023

No major world economy will face a recession in 2023, despite central bank tightening, Report informs referring to Goldman Sachs analysts.

Experts studied the situation in nine countries that were among the first to tighten monetary policy. They were mostly emerging economies in Latin America, Central and Eastern Europe, and New Zealand. None of them showed signs of recession, given that their labor markets remain stagnant.

Their resilience supports the forecast that no major economy will enter a monetary policy-driven recession next year, Goldman Sachs analysts said.

Among the main factors in maintaining the economies of countries at an acceptable level is the unsatisfied demand for labor. The rapid growth of consumer lending to the population will also help prevent a recession. At the same time, core inflation is likely to have already reached its peak in most countries.