Countries in Asia have not been able to cope with the onslaught
The Russia-Ukraine war is pushing up the supply of goods on the one hand, and rising commodity prices on the other. Added to that is the financial crisis in different countries. The World Bank has warned that Asia’s economic growth could slow down this year. In a report released on Tuesday, they cut the Asia-Pacific growth forecast to 5 percent this year. Earlier it was reported to be 5.4%. They say that if the situation worsens, it could drop to 4 percent.
Earlier, various advisers and assessment agencies, ranging from the International Monetary Fund (IMF), had said that the war was affecting the lives of ordinary people. Some even warned that the situation could be even worse for countries like India that buy large quantities of essential energy from abroad. The World Bank also estimates that as many as 6 million Asian families have fallen below the poverty line, and their lives will continue to decline due to rising prices. That’s how businesses and businesses will be affected. In particular, China’s economic growth could slow to 5 percent this year from 7.1 percent last year, they said.
Corona has slowed the global economy over the past few years. The amount of debt in different countries has increased. Since then, the price of crude oil in the world market has exceeded the level due to the war. Jamie Dimon, chairman, and CEO of JPMorgan warned in a letter to shareholders that rising oil prices could push food and electricity prices further. He also said that the decisions are taken by the governments of various countries to fight the Corona, the financial crisis, and the Western sanctions on Russia were also a challenge to the world.
Earlier, a survey by the World Economic Forum found that oil prices had indirectly reduced people’s purchasing power. Which is affecting the demand. For this reason, rating and advisory firms such as Fitch, ICRA, and Morgan Stanley have already cut their forecasts for growth. The government itself has reduced it from 9.2% to 7.9%. The IMF said the whole world was at risk. But there is more to worry about in India because they are the biggest consumer of crude oil in the world market. Companies are also pushing for higher raw material prices. On top of that, the economy is also under pressure from various countries, including the United States, to follow the path of rising interest rates in the face of rising prices.