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Too early to predict a global recession; experts said - the effect of America's high tariff will be visible
In recent times, US President Donald Trump announced to impose and increase tariffs on many countries of the world. After the tariff imposed by America, will have a big impact on the global trade supply chain and economic growth in many countries of the world. There is a strong possibility of inflation increasing due to this. The pace of softening the monetary policies of central banks may slow down.
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.
