Even though India has managed to stay afloat, most of the world has been facing headwinds including inflation and geopolitical tensions. After smaller countries such as Pakistan and Sri Lanka were strangled by debt, recession caught up with the world's fourth largest economy, Germany. But beyond that, 20 countries which use the Euro as a currency have also descended into mild recession this year.
The Eurozone's GDP dropped by 0.1 per cent in the first quarter of the year, after a similar dip in growth for the last three months of 2022.
Since these countries registered a GDP decline for two back to back quarters, they can be included among recession-hit economies.
But that was not the case for the entire European Union, which bounced back with a 0.1 per cent rise in GDP for the first three months of 2023, after a 0.2 per cent drop in the previous quarter.
The reason behind the downturn is a combination of inflation and high interest rates, which brought down consumer spending and restricted the cashflow.
