Special Report August 3, 2022	Days:  21 25 03 11 22

economics

MACRO OVERVIEW (AUGUST 2022)

PMCG

GLOBAL ECONOMIC TRENDS: UNCERTAINTY ON THE RISE AGAIN

The following are among the various factors contributing to rising uncertainty worldwide:

- The Russia-Ukraine War;

- Supply chain disruptions arising from the COVID-19 pandemic, especially in China;

- Record-high inflation in many countries, especially, rising prices for food and energy;

- Increasing interest rates globally leading to the following risks:

-- Risk of stagflation of the US economy and a global recession; and

-- Risk of capital outflows from developing economies;

- A potential new wave of the COVID-19 pandemic;

- Sustained war, with no end in sight as of now, is only exacerbating all these problems.

The global uncertainty brought on by these many factors has been highlighted by the World Uncertainty Index (WUI).