Colossal structural shifts are taking place in the global economy, as evidenced by the huge challenges during the ongoing year. In 2023, China seeks recovery, but the West – the US, the Eurozone and the UK, and Japan – will cope with recession and the specter of a debt crisis.
In a recent Foreign Affairs commentary, Mohamed A. El-Erian warned that we are not facing just extraordinarily challenging business-cycle fluctuations, but structural and secular long-term pressures. As a result, “the global economy may never be the same.”
In reality, the “old normal” has been history since 2008 and the consequent debt crises. During the past decade, world economy has been driven by geopolitical agendas, not by economic priorities. And the results have been predictable: catastrophic.
Today, the risk of recession casts a dark shadow over the US economy. The Eurozone is facing a deep recession,…