Supply problems have plagued the retail sector this year, forcing Walmart and Target with full warehouses to cut orders, for example. Adidas cuts its forecast for the year in a sign of growing uncertainty. The US will enter recession this year. Ukraine, Russia and the United Kingdom already are. The IMF confirms that global growth will slow to 2.7% next year, down from 3.2% this year and 6% in 2021. ['Worst Is Yet to Come' for Retailers Facing Recession – SJ]
For reasons more geopolitical than economic and financial reliability, Pakistan has obtained from the IMF the approval of the EFF (Extended Fund Facility) program with the seventh and eighth tranches of 1.17 billion dollars. Will this be enough to save the exports of the leather sector which, according to data from the Pakistan Bureau of Statistics (PBS), have decreased by 18.99%?
Higher temperatures and extreme weather conditions have inflicted crippling losses in countries in the Middle East and Central Asia, the IMF explains. Egypt is one of the most exposed countries. To support the shift to a greener and climate-resilient economy, the Egyptian government recently launched the National Climate Change Strategy, in which private industry will have to play a key role.
Beyond the suffering caused by the Russian invasion of Ukraine, an IMF analysis explains how the entire global economy will feel the effects of slower growth and faster inflation: rising commodity prices increase inflation; disrupted supply chains and refugee crises produce poverty; investment crisis causes capital outflows from emerging markets.
With the COVID-19 Lockdowns, “consumers have reduced spending on services and bought more artifacts“ (IMF-Blog), accelerating the rebound in manufacturing production, but the logistical crisis of the “Supply Chain” (NY Times) and the tail end of the pandemic have put global trade even more in crisis. Europe risks another energy crisis (Bloomberg) due to the soaring cost of gas, driven by the Ukrainian crisis. Agenda against inflation.
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