Many major economies to hit recession in CY23, says Nomura Holdings

Many major economies will enter recessions over the next 12 months amid tightening government policies and rising living costs, pushing the global economy into a synchronized growth slowdown, according to Nomura Holdings Inc.

The brokerage expects the euro zone, the UK, Japan, South Korea, Australia and Canada to fall into recession along with the US, Rob Subbaraman and Si Ying Toh at Nomura said in a research note.

Still, central banks looking to restore their inflation-control credibility are likely to err on the side of tightening policy too much even if it sacrifices growth, before cutting rates in 2023, they said.

“Increasing signs