It's been two years since the COVID epidemic, but there's no sign of a definitive recovery from the epidemic. In the meantime, a new type of virus called omicron has started to appear again.
What pathways the world largest economies like china will follow to recovery this? Will global currency purchasing power go down further? Will inflation increases?- For now, these questions are revolving around the world economy. The biggest question is, Will the world economy rise in 2022 after the last two years of collapse due to the epidemic? Economists say that the future of the economy depends on these three factors.
Meanwhile, a new type of coronavirus, Omicron, is being spread around the world. It was initially understood that Omicron was more contagious than previous types. But is its destructive power greater than the delta type of coronavirus? We may have to wait a few more days to get the answers to these questions. Strict restrictions have already been imposed in various countries around the world to deal with Omicron. Restrictions due to Corona mean direct impact on the world economy. The big question now is whether such a situation will return in 2022. Also, will world economy collapse in 2022?
Inflation
Decreased purchasing power of currency due to abnormal rise in prices of goods and services- In general terms, this is called inflation. Lowering the purchasing power of money around the world means further deterioration in the living standards of marginalized and poor people. For example, many low-income people in the world, including Bangladesh, cannot eat meat every day. Now, if the price of fish and meat goes up further, there is no way without reducing their meat intake. As the purchasing power of money declines with declining incomes, the economy comes under increasing pressure and reduces expansion. Downturn in the world economy due to COVID and various other reasons in the last two year has led to the rise in inflation. Analysts say it is supply-crisis inflation. Once the supply crisis is over, the situation will improve. But many say the world is entering an era of chronic high inflation. Significantly, the economic forecast indicated that by the end of the year, the US inflation rate would be 2 percent. But in reality that rate has increases to 7 percent. Is there something like this is waiting in 2022, that's what economists are now worried about.
Meanwhile, another big event is the rise in fuel prices. After a few days of continuous growth, however, oil prices have now stabilized. Analysts believe that this is hampering the economic recovery. Because, if the price of fuel increases, it will have a direct impact on the people income. Also, Russia-Ukraine crisis is another matter. If this political crisis intensifies, GAS prices are likely to rise.
China
China could not avoid the impact of the Corona epidemic. The stagnation has come down to the Chinese economy, which was moving forward at a breakneck pace. Economists say recession in construction industry, restrictions due to corona, Capital deficit- these three factors were the reasons behind the stagnation. As a result, China's growth rate fell from 6 percent to 0.8 percent.
Economists hope that the Capital deficit will be filled in 2022. But there are still doubts about whether China will be able to reach the previous peak due to the other two cases. The problem is that when the Chinese economy stagnates, the economies of many of its allies lose pace.
In addition to these three issues, the good and bad of the world economy will depend on a number of other political issues.
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