At least three shocks have hit the global economy since 2020, Economic Survey for 2022-23 has noted.
In general, global economic shocks in the past were severe but spaced out in time. This changed in the third decade of this millennium.
It all started with the pandemic-induced contraction of the global output, followed by the Russian-Ukraine conflict leading to a worldwide surge in inflation. Then, the central banks across economies led by the Federal Reserve responded with synchronised policy rate hikes to curb inflation.
The rate hike by the US Fed drove capital into the US markets causing the US Dollar to appreciate against most currencies. This led to the widening of the Current Account Deficits (CAD) and increased inflationary pressures in net importing economies.
The rate hike and persistent inflation also led to a lowering of the global growth forecasts for 2022 and 2023 by the IMF in its October 2022 update of the World Economic Outlook.
The frailties of the Chinese economy further contributed to weakening the growth forecasts.
Slowing global growth apart from monetary tightening may also lead to a financial contagion emanating from the advanced economies where the debt of the non-financial sector has risen the most since the global financial crisis, the Survey said.
With inflation persisting in the advanced economies and the central banks hinting at further rate hikes, downside risks to the global economic outlook appear elevated.
Cong seeks discussion in LS, dignified treatment for deported Indians by US
The Indian nationals who were deported from the US for illegally arriving in the country on Wednesday claimed that they were sent back on the military aircraft with their hands and legs cuffed throughout the journey.
J&K mysterious deaths: All pesticide, insecticide shops sealed in Rajouri district
All pesticide and insecticide shops have been sealed by authorities in Jammu and Kashmir’s (J&K) Rajouri district as part of preventive measures taken after 17 ‘mysterious deaths’ took place in Budhal village, officials said on Thursday.
Pariksha Pe Charcha: PM Modi to engage with students; Sadguru, Mary Kom, Deepika to join discussion
The much-anticipated eighth edition of 'Pariksha Pe Charcha' (PPC) is set to return in an expanded format, featuring an array of distinguished experts and guests, alongside Prime Minister Narendra Modi.
Maha Kumbh: 25,000 tribal devotees to take holy dip at Triveni Sangam
In a historic event, around 25,000 devotees from tribal communities across the country will converge at the Maha Kumbh in Prayagraj to take a holy dip at the Sangam and pledge to safeguard their religion, culture, and traditions.
White House dials down Trump's plan to 'take over' Gaza
The White House said on Wednesday that President Donald Trump had not committed any funds for his proposal for the US to take over Gaza or deploy troops there for that purpose.
After US, Israel withdraws participation from UN Human Rights Council
A day after US President Donald Trump announced America's withdrawal from the United Nations Human Rights Council (UNHRC), Israel's Minister of Foreign Affairs, Gideon Sa'ar, has said that Israel would also join the US in its decision not to participate in the UNHRC.
Bangladesh founder Sheikh Mujibur Rahman's house vandalised, set on fire by mob in Dhaka
A large group of protesters on Wednesday vandalised and set on fire Bangladesh founder Sheikh Mujibur Rahman's residence in Dhaka during a live online address of his daughter and former Prime Minister Sheikh Hasina.
UN chief speaks out against 'ethnic cleansing’ in context of Trump plan to clear Gaza
United Nations Secretary-General Antonio Guterres has spoken out against "ethnic cleansing" in Gaza after US President Donald Trump suggested ousting Palestinians living there to neighbouring countries.