Expert Chaslau Koniukh
  • Companies
  • Global investment
  • Investors
  • Terminology
  • Economy
  • Stock Market
  • World exchanges
  • Tech and Marketing
slowdown of the economy
Economy

Experts: the slowdown of the economy will continue

16.06.2022
2 min read

What factors are influencing the slowdown of the economy

Many markets are still recovering from the pandemic, the negative effects of which are significantly hampering development in various areas. There is a worldwide slowdown in economic growth, which is causing experts to worry. Another risk factor is the threat of stagflation – a situation where high inflation rates are observed simultaneously with low economic growth rates.
It should be noted that the governments of many countries have already taken a number of steps to minimize the threat. However, so far it has not been possible to take full control of the situation – a slowdown in the dynamics of market recovery is observed even with record-low interest rates. The economy is still acutely affected by the consequences of the pandemic, which include rising energy costs, the threat of new outbreaks of disease, and the disruption of supply chains.
Experts also advise central banks against raising key rates, which could further weaken the global market. In addition, such a decision will trigger an adjustment process on stock exchanges, which will primarily affect the value of shares of technology companies.
According to the pessimistic forecast, the new strain of coronavirus may reduce the growth rate of the economy by about 2 times. France, Italy, and Germany will feel the greatest impact.the reason for the slowdown of economic growthThe slowdown in the dynamics of recovery has been observed since the fourth quarter of 2021. Then, due to the impact of the Omicron strain, economic growth was only 0.7%, which is 2 times less than in the previous period.
Previously, the growth forecast from the IMF was 6% in 2021, but it was lower than expected. Experts warn that this year the dynamics of the global economy will continue to decline. GDP growth should amount to 4.9%. However, countries with a strong market will show better results than developing countries. As for Asian countries, growth prospects for them have been revised downwards.
The world will have to cope with the consequences of the pandemic for a long time. IMF analysts point out that over the past 2 years, personal income in developed countries has decreased by 2.8% compared with the pre-crisis period. In emerging market states, incomes have decreased by 6.3% per year. And so far it is difficult to talk about the positive dynamics, as in the world there is a great threat of new outbreaks and lockdowns. This is especially true for countries where the vaccination program is slow.
The global market is also affected by the slowdown of the Chinese economy, caused by rising energy prices and the crisis in the real estate market. As a result of high demand and lack of capacity, there have been power cuts since the third quarter of 2021, which has had a negative impact on production and GDP growth in the country.

Tags: Economy
0
Previous Post Investments in the cryptoindustry: prospects for market development Next Post Bill of exchange: how to correctly draw up a document

You Might Also Like

Korean government
Economy
Korean government allocates funds to support battery manufacturers
12.07.2024
S&P 500 index
Economy
What will happen to the S&P 500 index in the next 12 months: analysts’ forecast
23.11.2022
Contribution to the country's economy
Economy
What contribution do working women in Japan make to the country’s economy
21.07.2020
Japan's exports
Economy
Japan’s exports continue to grow for 19 consecutive months
09.12.2022
African leaders
Economy
African leaders have called on the world community to help
18.12.2020
Africa's largest economy Nigeria
Economy
Africa’s largest economy plans to increase the size of sovereign wealth fund
18.05.2023

Popular Posts

  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • Spain’s economy performs best in the EU
  • Li Ka Shing: How can success be achieved without money and education?

Editor's Picks

Chaslau Koniukh
Analytics

American bankers from JPMorgan and Goldman Sachs advise to invest in gold: review by Chaslau Koniukh.

Press Secretary
17.08.2020
Expert Chaslau Koniukh
Analytics

Chaslau Koniukh on the analysts’ opinion on the key stake size change soon

Press Secretary
18.06.2020
expert Chaslau Koniukh
Analytics

Chaslau Koniukh: Internet trade market in Russia may reach 2.78 trillion rubles.

Press Secretary
30.05.2020
Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh
Analytics

Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh

Press Secretary
16.05.2020

Popular Posts

  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • Spain’s economy performs best in the EU
  • Li Ka Shing: How can success be achieved without money and education?
  • Skolkovo analysts: the Russian energy market is suffering losses
Expert Chaslau Koniukh
  • Facebook
  • Twitter
  • Instagram

© 2024 CHASLAU KONIUKH. ALL RIGHTS RESERVED. Expert in marketing and project management, international investments, financial analyst.

Menu

  • Biography
  • Companies and corporations
  • Global investment
  • Investors and Entrepreneurs
  • Economy
  • Market terminology
  • Stock Market
  • World exchanges
  • Tech and Marketing
  • Analytics