Did you know that people such as Bill Gates anticipate that the global economy is going to slow down this year?
Russia’s war and the COVID pandemic are impacting the economy and so are many other factors.
If you want to get a better grasp of the economic outlook of the world, there are a few things to know.
Continue reading if you want to learn about this year’s global economic trends so that you understand where the world is headed!
1. Seeing the Effects of COVID
One of the most common global economic trends this year is that people are seeing the effects of COVID.
The COVID pandemic has stopped much of the world in its tracks, production has slowed down, and fewer people are back on the lines working. With all of these factors combined, people around the globe are seeing this with unstocked shelves and food shortages.
Supply bottlenecks have also occurred because of the pandemic. This puts a lot of strain on the economy.
2. Projected to Slow Down
Professionals around the world are discussing economic concerns. They are advising people that the economy will slow down.
Bill Gates recently addressed this due to the war between Russia and Ukraine. He also mentioned that government debt from the pandemic is affecting the supply chain and inflation is increasing.
If you are looking for another take on this slow down, Robert Shiller will provide insight.
3. Increasing Gas Prices
Much of the world was receiving gas from Russia and in an attempt to stop the war, gas prices have increased.
In support of Ukraine, the US, the UK, and many other countries stopped getting gas from Russia. Getting gas from Russia involves funding their war. Since this form of energy is already diminishing around the globe and we need to find other means of getting it, prices are rising.
4. Food Shortages & Price Changes
Have you noticed empty shelves at your local stores, or maybe an increase in your total bill?
Companies across the globe are raising their prices, especially for wheat products, milk, and meat. You will also notice that formula shortage and other necessities are becoming a problem.
There are a few causes for these shortages and changes, but much of it has to do with transportation and little supply.
5. Managing Climate Concerns
When people think about economic issues, they often overlook the climate and how weather impacts business.
Now that the world is seeing more extreme weather events as greenhouse gasses increase, the weather is impacting the supply chain. Warehouses and corporations are burning in forest fires, getting washed up in floods, and crushed by tornados.
All of the weather events are impacting the economy and making it difficult to replenish items that are already hard to come across.
Monitor These Global Economic Trends
With so much many unpredictable events taking place, it’s no wonder that global economic trends are taking a turn for the worst.
The effects of the COVID pandemic and shortage of staff and materials are starting to catch up with countries. Another large factor is the war between Russia and Ukraine, which increase the prices of gas, wheat, and bread.
Even the climate is taking a role in affecting the economy and people are constantly having to adjust.
Be sure to read more of our articles about the global economy and making smart financial decisions!