World economy – Balancing act

For more than a year now, a threat of recession has been looming over the global economy. With rising interest rates driving up the cost of debt, an inflation shock eroding real incomes, geopolitical and trade frictions and, more recently, a banking stress episode, everything seems to be pointing in this direction. But in mid-2023 the economic situation cannot be described as recessionary. To date, there has been no significant rise in unemployment, no contraction of demand and n...