The pandemic and the Russia-Ukraine war has caused an increase in global inflation. Consumer goods are rising in price due to these events. The other factor is that certain corporations are taking advantage of the situation. Intentional price hikes are being done and are not being challenged. World leaders will face the ire of citizens who cannot afford food or fuel. Food prices were previous increasing prior to the war in Ukraine. Global inflation will not effect all nations equally. The developing nations will struggle combined with debts owed by the International Monetary Fund and World Bank. The developed nations might do better, but the class structure means people in poverty are more vulnerable. It is possible that more people could fall into poverty. Inflation does happen in an economic system. The concern is about the rate of inflation, Since January prices have gone up. If this is not controlled, it is possible the world could see another economic crisis. The world have not recovered from the 2008 economic crash. The EU will see higher gas and oil prices due to the sanctions directed at Russia. Although the US is not dependent on Russian energy, the sanctions imposed will still effect American energy prices. This explains why Asian and African nations are not willing to impose sanctions on Russia. China doing lockdowns harms economic activity. A slowdown in economic growth has created fears of possible recession. While the future cannot be predicted, the condition of the global economy is weakening.
No comments:
Post a Comment