The cost of almost everything from food to fertilisers is soaring, causing consumers to spend less. As governments aim to bring down the cost of living, containing inflation without pushing economies into a slowdown is difficult. Meanwhile, Russia's war in Ukraine and pandemic disruptions continue to constrain supply chains, darkening the outlook for the months ahead. So, should we be ready for a global recession? Elsewhere, the UK government takes aim at expensive energy bills. Can the $19bn aid package ease the squeeze on incomes?...(read more)
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The world economy is facing an uncertain future as the COVID-19 pandemic continues to spread around the world. Governments are struggling to balance the need to protect public health with the need to keep economies afloat. The World Bank has warned that a global recession is looming, but is it inevitable? The World Bank predicts that global growth will drop to 2.5% in 2020, the lowest rate since the financial crisis of 2008. This is a downgrade from its earlier prediction of 2.9% in January 2020. It warns that there is a high risk of a deeper-than-expected downturn, and that the impact could be felt for years to come. The pandemic has caused disruption across global supply chains, and has led to a decline in trade, as countries have shut their borders to try to contain the virus. The tourism industry has been hit particularly hard, with many hotels, airlines, and travel companies seeing significant drops in revenue. Governments around the world have tried to mitigate the impact by injecting trillions of dollars into their economies. The US Congress recently passed a stimulus package worth $2 trillion, and other countries have announced similar measures. These included loans to businesses, tax breaks, and direct cash payments to individuals. While these measures may provide some short-term relief, they won’t necessarily prevent a recession from taking hold. The pandemic is an external shock that has affected every part of the global economy. It’s not just about supply and demand; it’s about people’s ability to work and consume. The main effects of the coronavirus are likely to be felt in developing countries. The World Bank warns that around 60 million people could be pushed into extreme poverty as a result of the pandemic. Many of these people work in informal sectors such as agriculture or construction, and are unlikely to have any social safety net to fall back on. Although the World Bank’s warning of a global recession may seem dire, we should remember that there is a lot we still don’t know about the pandemic’s impact on economies. It’s possible that a vaccine or treatment could be developed sooner than expected, or that economic activity returns once the virus is brought under control. However, it’s also possible that much of the damage has already been done. We’ve already seen widespread job losses and business closures, and there is likely to be more pain to come. It’s vital that governments continue to support their economies, particularly those most vulnerable to the pandemic’s economic impact. In conclusion, a global recession may be looming, but it’s not inevitable. It’s up to governments and policymakers to take decisive action to mitigate the impact of the pandemic on economies around the world. With careful planning and co-operation, we can weather this crisis and emerge stronger on the other side. https://inflationprotection.org/is-a-global-recession-inevitable-the-world-bank-issues-warning-counting-the-cost/?feed_id=91610&_unique_id=64491b3d4e212 #Inflation #Retirement #GoldIRA #Wealth #Investing #economy #GlobalRecession #globalrecession2022 #inflation #recession #recession2022 #risingcoata #risingcostofliving #risingcostoflivinginuk #risingcostoflivingus #theworldbankwarnsofaglobalrecessionsoisitinevitable #RecessionNews #economy #GlobalRecession #globalrecession2022 #inflation #recession #recession2022 #risingcoata #risingcostofliving #risingcostoflivinginuk #risingcostoflivingus #theworldbankwarnsofaglobalrecessionsoisitinevitable
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