The outlook for the world economy amid geopolitical tensions, inflation and monetary tightening
INSIGHTS - ECONOMIND
The outlook for the world economy amid geopolitical tensions, inflation and monetary tightening
The outlook for the world economy amid geopolitical tensions, inflation and monetary tightening
Until a few months ago, inflation was the main source of concern for the international economy. Now, after the invasion of Ukraine by Russia, the world fears the prospect of a new recession, in a new scenario also shaped by the decision of the Federal Reserve, the American central bank, to raise interest rates by 50 basis points, the first step of a monetary tightening process that could last until next year.
This decision will also likely push the European Central Bank and other central banks to raise interest rates. Meanwhile, China, due to repeated lockdowns intended to stem the new season of the coronavirus pandemic, is slowing down its production cycle with repercussions on the rest of the world as well.