Skyrocketing inflation and higher interest rates are setting the stage for a massive global financial crisis. The world’s major economies are staring at a steep recession.

According to the eminent report agency, Namoura countries, including the likes of the United States, Japan, the United Kingdom, South Korea, Canada, Australia, and the Euro-zone, are heading into a recession by the end of 2022.

As nations are trying to beat the economic fall, the tightening monetary policies could choke global growth. So, what’s ahead?

A Peak into the Global Financial Crisis, 2022
A financial storm is brewing that will be global in nature and could wreak nations economically and politically. As major countries, both rich and poor alike, continue to amass immense debts, the possibility of a global recession is knocking on the door.

Spurred by the easy money policy placed post the financial crisis 2008-09, central banks have elevated spending. Coupled with the historically low-interest rates, the global financial crisis 2022 has become inevitable.

Even before the COVID pandemic, governments were lending and spending heavily. For example, before the pandemic, the public debt of the world’s 70 poorest nations had gone up by 18% of the GDP. However, experts believe the level of indebtedness here was vastly understated.

And experts fear that Sri Lanka’s catastrophic economic collapse is a peek into what may unfold in other nations soon.Read More