Elon Musk, the richest person in the world, made a statement about the course of the US economy. Musk noted that the U.S. economy is most likely in recession and that its effects could last between 12 and 18 months. In addition, the US giant bank Goldman Sachs reported that the US dollar is overvalued and that the Japanese Yen may strengthen in the event of a global recession.
Global Markets continue to struggle with challenges. Although central banks are trying to provide price stability in order to defeat inflation, which is the biggest problem of the world, an effective struggle cannot be carried out in the current situation.
Due to the increase in demand that emerged with the slowdown of the coronavirus pandemic and in the light of geopolitical developments, the problem of inflation on a global scale has emerged. While the highest inflation figures in 40 years were seen in the US, central banks began to look for ways to reduce inflation. Although the central banks, which have implemented the method of slowing down demand by raising interest rates, have just started these transactions, the effects are unlikely to be seen in the short term.
While the war between Russia and Ukraine has caused shortages in oil, natural gas and grain products, the need for raw materials for semiconductor materials used in the field of technology has also been hampered by the war. Although there is a reaction to Russia around the world, Russia is trying to turn this situation into an opportunity by using its strong energy and mines as a trump card.
RUSSIA’S MOVES CONTINUE
By taking a tough stance on energy purchases, Russia has begun to create divisions against those who oppose it. Eni, Italy’s largest oil company, announced that it will continue to import energy by opening an account from Gazprombank.
TECHNOLOGY PRODUCTIONS DISRUPTED
Major problems in the supply of chips have dealt a blow to the technology sector. While the factories went to temporarily stop production because they could not supply products, the prices of the products that could be produced increased due to the low supply.
COUNTRIES ARE ALSO MANIPULATING THEIR PRICE INCREASES
Due to the decrease in the rainfall regime that has emerged in the world, some countries have started to ban the export of their food products. Most recently, due to the drought in India, the Indian government banned the export of wheat. Due to this situation affecting the food chain in the world, wheat prices increased in a short time in many regions, especially in the EU. Apart from geopolitical effects, meteorological situations have also begun to increase their impact on the global economy and countries have turned more towards protectionism.
