The global economy continues to be weakened by the Russia/Ukraine war through significant disruptions in trade, food and fuel price shocks. All of which are contributing to high inflation and subsequent tightening in global financing conditions by central banks around the World.
Inflation reached or exceeded 9% in US and Europe, and to curb this disaster, recession started to become an expectation. It is not if, but when.
The disrupted trade in food and energy will bring the world economy to its knees. Russia is the world's third-biggest petroleum producer and a leading exporter of natural gas, fertilizer and wheat. Farms in Ukraine feed millions globally. The resulting inflation has rippled out to the world.
But with that, the sanctions on Russia and the Russian sanctions on EU and US. is dragging the various economies into recession which this time will be worse than 2008.
One wonder, why? Just a thought.
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