Dear MEL Topic Readers,
Global economy faces 'its biggest test' since WWII
The world seems to be facing quite a few economic, environmental, and humanitarian challenges recently, each of which may not be solved by itself. As Russia’s invasion of Ukraine hasn’t shown any sign of a cease-fire, some countries and companies are trying to make investments in digging fossil fuels like oil and coal in spite of rising temperatures. Also, both Ukraine and Russia are major suppliers of wheat, corn, and barley, all of which are essential food for many in the world. Any shortage of essential food causes a chain reaction in the world’s food supply chain. In fact, India banned the export of wheat and Indonesia did the same for palm oil recently. Also, China’s Covid lockdowns in major cities have been causing serious supply chain problems for manufacturing industries, and many manufacturers and retailers are lowering business projections. Furthermore, fear and sign of inflation are pushing central governments to raise interest rates, which makes mortgage rates, housing prices, and rents higher and higher, which affect the household budget seriously. In the 2007-08 financial crisis, China’s major domestic investment helped the world’s economy recover. But this time, China’s domestic market is also facing an economic slowdown. And don’t forget. Global temperatures are rising, too. So, instead of just looking at short-term relief, the world seems to pursue longer-term, environmentally sustainable solutions.
Enjoy reading the article and learning about what the world is facing now.
https://edition.cnn.com/2022/05/23/business/davos-global-economy-imf/index.html
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