With global recession looking increasingly likely this year, investors should review their portfolios sooner rather than later to mitigate avoidable risks, warns the CEO of one of the world’s largest independent financial advisory organisations. 

The warning from deVere Group’s Nigel Green comes as major economies around the world experience slower growth in 2022. 

The head of the International Monetary Fund (IMF) had recently said that the organisation was set to downgrade its global economic growth forecast due to the impact of Russia’s invasion of Ukraine. 

Mr Green said: “Before the Russia-Ukraine war began and sanctions were imposed in response, raw materials, energy, manufacturing parts and consumer goods were all surging at the quickest pace since the 1980s due to pandemic-triggered supply chain issues. But this has been exacerbated since the invasion. International supplies are now at breaking point, and this, in turn, negatively impacts global production and, therefore, output, investment and jobs. And as businesses pass on the costs to consumers, households inevitably cut back on other expenditure.” 

He continues: “Against this backdrop, developed economies are having to accept that they are facing the increasing likelihood of a recession in 2022 because of these ongoing supply chain disruptions and red-hot inflation not seen since the 1970s.” 

“In addition, developing countries can be expected to be hit hard by the fallout of higher energy and food prices, combined with tighter financial conditions triggered by advanced countries raising interest rates in a bid to control inflation,” Mr Green adds.