Inflation Shockwaves
The global inflation shock will have powerful economic and political effects in 2023. Which the Eurasia Group says will be the principal driver of a global recession, add to financial stress, and stoke social discontent and political instability everywhere. The high inflation has come from multiple sources, such as the Covid-19 pandemic, China’s zero-Covid policy, and the Russian-Ukrainian war.
- Stocks have raised inflation rates at unprecedented rates – which most countries hadn’t seen in nearly 50 years.
- Central banks will maintain a restrictive policy stance through the majority of 2023 in hopes of getting inflation down.
- And in countries like Turkey, Spain, Argentina, Nigeria, and Poland – who are going into elections will face pressure due to the economic troubles.
