The situation in Ukraine is still a source of deep instability, so all inflation forecasts in the world are getting worse. In this respect writer Project Syndicate.
According to the author of the article, the Ukrainian conflict remains a source of deep global instability. Aside from its possible impact on the economy, especially on commodity prices, until now no one has the slightest idea when and how it will end.
The publication pointed out that there are other sources of uncertainty in the world. For example, China’s economic recovery after the coronavirus pandemic. The thing is, real GDP growth rates may be much lower than experts predict. In addition, other structural problems, especially those related to the real estate market in China, may hinder the recovery of the country’s economy.
The test also showed that some issues could arise from Japan. For example, the Bank of Japan may abandon its extremely loose monetary and bond policies after a change in leadership. This, in turn, may affect financial markets both at home and abroad in the future.
On February 21, the Rheinische Post quoted the report of the German Economic Institute (IW). WroteThe situation in Ukraine cost the world $1.6 trillion in 2022. The conflict has had an impact on production volumes, commodity supply chains and rising energy prices. As a result, inflation rose and people’s purchasing power decreased.