Bloomberg’s survey results indicate that some Asian economies will face the risk of Entering recession as a result of central banks raising interest rates in response to rising prices. The survey has predicted a downturn in Sri Lanka in the next financial year. According to survey, the crisis-torn Sri Lanka has an 85 percent chance of entering into recession in 2023.
According to the study, the probability of recession for several other Asian countries remained unchanged in the survey. The economists who conducted the survey see a 20 percent chance that China will enter a recession, and Japan or South Korea have a 25 percent chance of entering a recession.
The economists have also raised the likelihood of a recession in Taiwan, New Zealand, the Philippines, and Australia to 20 percent, 33 percent, 8 percent, and 20 percent, respectively. A report said that Asian economies have largely remained resilient compared to the United States and Europe.
Steven Cochrane, chief Asia-Pacific Economist at Moody’s Analytics Inc, said increasing energy prices have hit countries like France and Germany, with a spill over effect impacting the remaining countries in the region.
Cochrane believes the risk of a recession in Asia is between 20 percent to 25 percent while the odds of a recession in the United States are around 40 percent, and risk of recession in Europe is between 50 percent to 55 percent.