Global recession looks unavoidable

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J. Soedradjad Djiwandono
J. Soedradjad Djiwandono, Emeritus Professor of Economics, Faculty of Economics and Business, Universitas Indonesia, and Adjunct Professor of International Economics, S. Rajaratnam School of International Studies (RSIS), Nanyang Technological University (NTU), Singapore.

Jakarta, IO – Recent trends evident in world economies have not been encouraging. The World Bank President has publicly warned that high mortgage rates in the US and other developed economies may have the effect of triggering a recession in 2023. 

In the Russian-Ukraine war, the latest development has seen a further advancement of the Ukraine army pushing the Russians back further, to the northeast border. Further, the exhumation of bodies buried in a mass grave in Izyum reveals a grieving possibility of war crimes committed by Russian soldiers against s civilians. This does not seem to have deterred President Putin from carrying on with his original plan, as he revealed after a meeting with President Xi Jinping in Kazakhstan recently. What the plan is he did not elaborate on; however, we may simply assume that it is to take over Ukrainian areas, like Russia did in Crimea in 2014. This is certainly not news we like to hear for sure. 

Maybe a bit of consolation comes from a recent WHO report, detailing the six million people dead globally, and that one million of these took place in the US. That must be bad news for the US government, which was then still during the Trump presidency. Be that as it may, the good news is that this is first time that WHO Director General Ghebreyesus declared that the end (of the Covid19 pandemic) is in sight. Again, as to when or how soon, he did not elaborate.