Current economic impact on the globe caused by Russia and Ukraine conflict.

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The global economy is expected to slow further in the coming year as the unexpected turmoil caused by Russia’s war of aggression against Ukraine resulting unexpected inflationary pressures towards the every household in the purchasing power capacity and increasing risks a worldwide inflation.

The unusually imbalanced and fragile prospects for the global economy over the next two years will be very critical. The global economy is projected to grow well below the outcomes expected before the war – at a modest 3.1% this year, before slowing to 2.2% in 2023 and recovering moderately to a still sub-par 2.7% pace in 2024 if there will not be any onset.

Growth in 2023 is strongly dependent on the major Asian emerging market economies, who will account for close to three-quarters of global GDP growth next year, with the United States and Europe decelerating sharply. Persistent inflation, high energy prices, weak real household income growth, falling confidence and tighter financial conditions are all expected to curtail growth. Higher interest rates, while necessary to moderate inflation, will increase financial challenges for both households and corporate borrowers.

Inflation is projected to remain high at more than 9% this year due to imbalance in the monetary policies effects. Again the demand and energy price pressure may reverse the transport costs and delivery times continue to normalise, inflation will gradually moderate to 6.6% in 2023 and 5.1% in 2024.

The Globe is now dealing with a major energy crisis and risks continue to be resulted a high levels of uncertainty making successful navigation of the economy out of this crisis and returning toward a sustainable recovery very challenging. If the assumed Growth may be weaker than projected if energy prices rise further, or if energy supply disruptions affect gas and electricity markets in Europe and Asia. Rising global interest rates may put many households, firms and governments under greater pressure as debt service burdens rise. Low-income countries will remain particularly vulnerable to high food and energy prices, while tighter global financial conditions may raise the risk of further debt distress.

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