16/07/2022
The economy is passing through a bizarre phase. Most nations are facing tough times in fighting high inflation. With high food and energy prices, consumer spending on other sectors decreases.
News suggest that more than a dozen nations altogether are in the danger zone and may face debt default. There is unconfirmed news of things not going well in the financial systems of China also.
It will be a pity if, after two sluggish years of COVID, when finally the recovery is being witnessed, the world is heading towards a recession. Higher interest rates will be bad for industries, but unfortunately, that's the only way for economists to contain inflation. I hope that the tightening of economic policies will be based on a balanced approach and will save the world or major countries from recession.
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