Due to Pandemic and Climate change, the world economy has taken a major turn by which no country is immune. All the countries are affected in one way or another. All the countries are facing global economic challenges.
Europe, a continent in the subtropical region facing major heat waves and putting lives of people in danger. China, the fastest growing country in the world, can soon face an economic crisis due to its own mistakes.
India will be the most populous and the fastest growing country by next year. The Russia-Ukraine war has changed the way we used to see the world. Overall, so much is happening in the world which is affecting every person’s life.
Let us look at some of the major global economic Challenges facing by the world:
US Economy
Strong dollar and lower fuel and non-fuel costs decreased the inflation rate in the USA, and relieved the Federal Reserve.
The USA Consumer price is still enhancing due to various reasons such as Russia-Ukraine war, global supply chain, etc. But, if we see the overall data, the USA Inflation declined in the last 12 months from 9.1% in June 2022 to 8.5% by the end of July 2022. As this is not yet the meaningful decline which the USA is looking for but, it is on the path.
Europe Economy
Global Pandemic decreased the spending of households including European countries. Due to which, the United kingdom economy faced a shrank in the second quarter for the first time. The Bank of England is expecting the economy to reach a 40 years high inflation rate going into recession.Â
On the other hand, the German Economy will lose 265 billion dollars by 2030 due to the Russia-Ukraine war and an increase in global oil prices. It will impact the hospitality industry and the employment rate in Germany.
Spain is opening its doors for the immigrants to do work in Spain due to which Spain can tackle its labor shortage problem and rise in future prosperity.
Plus the Heat waves in Europe is making the lives of people difficult in Europe which directly or indirectly affecting the whole Europe Economy.
China Economy
No doubt, China is one of the fastest growing countries in the world. A major consumer for the world’s economy and an essential exporter for the world supply chain. Due to the pandemic, China adopted a zero- tolerance policy for covid which affected the economy by 0.4% and left the China’s people pocket empty.
But other major problems in China are the Property crisis. As most households are refusing to do mortgage payment on the houses, they bought which can affect the country’s banking system. And, the loss in the banking system will affect the economic growth and put china into a huge crisis.
On the other hand, the step of China to invade Taiwan is already discouraging foreign investment and a trust in China for the global supply chain.Â
India Economy
According to Morgan Stanley, India is likely to be the fastest growing economy in the Asian Region in 2022-2024 which is expected to grow by 7% on average as a largest economy, contributing 28% to Asian economy and 22% to the global economy.Â
But, the world including India is not immune to Climate crisis and the pandemic. Hence, it is important to take global actions to tackle the problems.
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