Global Economy and Currency Performance Amid Recession, Ukraine-Russia War, and US Bankruptcy

NEW YORK - May 4, 2023 - PRLog -- The global economy has been undergoing a severe recession that is negatively impacted by rising costs of living, tightening financial conditions, US bank closures, Russia's invasion of Ukraine, and the ongoing COVID-19 outbreak. Investment growth in emerging market and developing economies is projected to remain below its average rate of the past two decades. The ongoing Ukraine-Russia war has become a hindrance to the growth of all sectors operating in the economy, shaking the financial markets. Sea freight and road freight are the most impacted modes of transportation, which contribute significantly to the global trade of goods. The bankruptcy of Silicon Valley Bank and the decline of Signature Bank have raised questions about the safety of depositors' savings around the world.

The IMF reports that the nominal size of the 24 economies that make up North America's GDP was around USD 26.8 trillion in 2021, an increase of USD 2.7 trillion from the previous year. North American inflation increased by 3.2% from 2021 to 2022, reaching 7.9%. The soaring dollar is expected to decline in value in 2023 as the US economy is expected to enter into a recession and the Fed lowers interest rates. The euro experienced tremendous turbulence in 2022, with its value declining to a 20-year low of 0.9903 against the dollar in August 2022.

The study predicts that multinational corporations globally will benefit from the expansion of populous growing economies of China and India in Asia, which will be the main forces behind the fast rise in global consumption. Consumer markets in populous Southeast Asian countries will also expand quickly, especially in Indonesia, the Philippines, and Vietnam. In 2022, the UAE's external sector mirrored the country's strong domestic economic growth, with non-oil foreign trade reaching previously unheard-of highs during the first half of the year and registering high single-digit to double-digit growth across all areas of trade, including exports, imports, and re-exports.

Global economy faces COVID-19 outbreak, US bank closures, and Ukraine-Russia war. IMF predicts US dollar decline in 2023. Multinational corps benefit from expansion in Asia. UAE non-oil trade reaches record high.

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