Too early to predict a global recession; experts said - the effect of America's high tariff will be visible

There is growing concern that the global economy is heading towards recession. Some experts are also warning against the possibility of recession. The reason for this concern is the recent announcement of high tariffs by the US.

Experts believe that if these tariffs take effect in April as planned, it will have a large impact on world trade, supply chain, and economic growth. However, some experts say that it would be too early to predict a world recession.

Chief Economist at Bank of Baroda, Madan Sabnavis, believes that inflation will be affected by the high tariffs imposed by America. This can slow down the process of easing monetary policies by central banks across the world.

He said that at this time all central banks are focusing on promoting growth by reducing interest rates. However, an increase in tariffs can disrupt this process. Countries that are highly dependent on exports will face serious challenges as their economic growth may be affected.

India, being a domestic economy, will remain largely safe on the growth front. However, the currency will see sharp fluctuations. Banking and global market expert Ajay Bagga said that the impact of US tariffs can be so severe that large parts of the world may fall into recession.

Today's world is interconnected and production is spread across many countries. For example, raw materials can be sourced from one country, processed in another country, and then assembled in different places.

Any disruption in this global supply chain can slow economic activity and even cause negative growth in some areas. He said this could prove to be disruptive to the extent of leading to downturns and recession in some sectors.