Global economic prospects dwindle as war and epidemics cast their shadows

“Demand will and will have to be restricted through the cancellation of the cash facilities,” she said. “And this has become very evident in recent months.”

She added that in addition to the war, the epidemic and rising interest rates, China is facing a downturn in the real estate sector, and the Brazilian economy may be affected by the political turmoil associated with the upcoming elections.

New data shows that China’s economic growth and retail sales back offAs the government imposes comprehensive closures to eliminate the Corona virus. By April 11, 87 of the 100 largest cities in China had imposed some form of movement restrictions, according to Gavekal Dragonomics, an economic research firm.

The restrictions are once again disrupting global supply chains for electronics, auto parts and other goods, and discouraging China’s imports of oil, food and consumer goods. China is the world’s largest oil importer, and lower demand there caused the International Energy Agency last week trim her expectations For oil demand growth this year to 1.9 million barrels per day, from an increase of 5.6 million barrels per day last year.

The Russian invasion of Ukraine, and the sanctions imposed to punish Moscow, also threaten to push European economies into recession. Last week, forecasters in Germany’s largest economic institutes expected A full European ban on Russian energy imports would cause German production to shrink by 2.2 percent next year and push inflation to 7.3 percent, a record for post-war Germany.

Global trade growth is also expected to slow this year. The World Trade Organization expects Global merchandise trade volume will expand 3 percent this year, down from a previous forecast of 4.7 percent. Depending on how the pandemic and war unfold, trade growth could be as low as 0.5 percent or as low as 5.5 percent, said Ngozi Okonjo-Iweala, director-general of the organization, at a press conference last Tuesday.

The group expected global trade growth to rebound to 3.4 percent next year, although these estimates are also subject to change.