Trade wars and political turmoil have caused much instability in the world economy.
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| Image on the streets of Germany. (Source: Getty) |
Germany has long been seen as an anchor of economic stability in Europe. But over the past five years, the German economy has barely grown. The world’s third-largest economy has been virtually “stagnant” since the Covid-19 pandemic. The economy will contract in 2023 and 2024, marking the first consecutive annual decline since the early 2000s. The International Monetary Fund (IMF) forecasts that Germany’s economy will grow a modest 0.3% in 2025.
High energy prices are putting pressure on companies, with more and more leaving Germany and consumers becoming more hesitant to shop.
Meanwhile, the UK economy shrank by 0.1% in January before Chancellor Rachel Reeves announced her spring budget in late March. "The UK economy starts 2025 with a setback as global uncertainty clouds the outlook," said Yael Selfin, chief economist at accountancy firm KPMG UK.
In the US, a preliminary survey in March showed consumer sentiment fell to its lowest level in more than two years, while long-term inflation expectations rose the most since 1993, as the Trump administration pushed ahead with raising tariffs on foreign goods.
Consumer financial expectations fell to a record low, according to a University of Michigan survey. US consumer prices rose at their slowest pace in four months in February. Economists predict that an escalating trade war will raise prices on a wide range of goods, from food to clothing, in the coming months, testing the resilience of consumers and the broader economy.
In Asia, consumer prices in China fell to their lowest level in more than a year. The National Bureau of Statistics (NBS) reported on March 9 that the consumer price index (CPI) - a benchmark for measuring inflation - fell 0.7% in February from a year earlier.
In India, inflation fell below the central bank’s target last month, allowing policymakers to continue cutting interest rates as the economy faces fresh headwinds from global trade conflicts.
Source: https://baoquocte.vn/suy-giam-kinh-te-phu-bong-nhieu-quoc-gia-307807.html
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