It comes as the war in Ukraine, rising prices, higher interest rates and the spread of Covid in China weigh on the global economy.The official purchasing managers' index (PMI) for December showed that China's factory activity shrank for the third month in a row and at the fastest rate in almost three years as coronavirus infections spread in the country's factories.Higher interest rates also make borrowing more expensive - so for both these reasons companies may choose not to invest in expanding their businesses.The impact of higher interest rates on loans affects economies at the government level too - especially emerging markets, which may struggle to repay their debts."Even though labour markets around the world are fairly strong, the kind of jobs being created are not necessarily high paying and we're going to have a recession, we are not going to see interest rates fall as rapidly as the markets think," he told BBC Radio 4's Today programme."