A possible global recession is no longer mere speculation for the United Nations (UN), which takes it for granted and warns that Latin America will be one of the hardest hit regions.
"Development prospects in a fractured world" is the title of the report presented by the organization, which states that the world "is heading towards a global recession and prolonged stagnation".
The analysis places emphasis on weaker regions such as Latin America. "All regions will be affected, but the alarm bells ring louder for developing countries, many of which are approaching debt insolvency," notes the UN.
UN analysts believe Latin America will experience one of the most pronounced slowdowns this year. Among the data provided by the research, the average growth rate will be less than 3%, with repercussions on public and private finances and on employment.
Among the factors that have triggered the slowdown in the global economy and inflation - according to the UN - are the decline in consumer and investor confidence and the war between Ukraine and Russia.
Bitcoin remains an alternative for Latin America
Regions such as Latin America are facing a negative economic scenario and this has been a reason for the population to turn to bitcoin as a safeguard of value in the face of one of the highest inflation rates in the world and this could perhaps increase in the coming months. if the predictions of the UN come true.
For adoption to spread, Latin America will face several challenges, the main one being trust management, as people need to have sufficient trust in bitcoin and the ecosystem. Other elements, such as user education or regulations, can also influence this, as reported in the past.
As is well known, one of the causes of inflation is the indiscriminate issuance of money by governments and central banks. The opposite is true for bitcoin, which has a limited issue of 21 million BTC (quotation in real time).
In this regard, in recent months the UN has also called on the US Federal Reserve (Fed) to raise interest rates.
For the international body, the Fed's actions "threaten to block growth altogether and make life much more difficult for heavily indebted companies, families and governments."
The UN forecasts are in line with those of billionaire investor Stanley Druckenmiller, who believes a recession is likely by the end of 2023. He also noted that this could be driven by Fed policies and interest rates already mentioned.
