Business & Economic

Will 2025 Bring a Global Economic Downturn?

4 min read

Inflationary Pressures and Central Bank Responses

The specter of a global economic downturn in 2025 is looming large, fueled primarily by persistent inflationary pressures. Central banks worldwide, particularly the Federal Reserve in the US and the European Central Bank, have been aggressively raising interest rates to combat inflation. While these measures aim to cool down overheating economies, they also risk triggering a recession by making borrowing more expensive for businesses and consumers, potentially slowing investment and spending.

Geopolitical Instability and Supply Chain Disruptions

The war in Ukraine continues to disrupt global supply chains and fuel energy price volatility. This uncertainty