The global economic outlook has become quite dark as central banks of each country implemented tight monetary policies to curb record inflation.The IMF lowered its global economic growth forecast for this year in a report on the global economic outlook released in April, and predicted a further decline in July.International Monetary Fund (IMF) President Kristalina Georgieva on the 6th (local time) cited the global spread of inflation, real interest rate hikes, slowing Chinese economic growth, and tougher sanctions against Russia over the invasion of Ukraine as threats to economic slowdown.He warned, “The global economic outlook has become darker since April,” adding, “The global economic downturn could hit next year.” “We are in a very rough sea,” he said, when asked if he could rule out a global recession, he replied, “The risk is growing, so we cannot rule it out.” Recent economic data show that some large economies, including China and Russia, contracted in the second quarter, pointing out that the risk is even higher in 2023.He said, “22 will be a tough year. But 2023 will be more difficult, he said, noting that while the long-lasting fiscal tightening will complicate the global economic outlook, it is important to control soaring prices.He said slowing economic growth may be a “payoff price” considering the urgent and urgent need to restore price stability. The Federal Reserve (Fed), the U.S. central bank struggling with high prices, raised its key interest rate by 0.75 percentage point last month, the largest amount in 28 years, to curb prices.In other words, it is a drastic prescription to tighten the money supply in the market, and there have been strong concerns that such a policy to curb prices will lead to an economic recession.Georgieva pointed out that the economic outlook is more multidimensional than two years ago, so energy exporters such as the United States are on a better footing, but importers are struggling.He went on to say that the IMF will lower its outlook for global economic growth in 2022 in the next few weeks, adding that it is currently finalizing the figure adjustment.Amid this gloomy outlook, South Korea is selling more than $3 billion worth of fighter jets and weapons to Poland in the aftermath of the Russian-Ukraine war.
Japan is seeking a comeback as a semiconductor cooperation system by joining forces with the government, and China is also trying to wage a war with Taiwan, shouting for one China in the third period of the Xi Jinping administration.In addition, it is creating a confrontation with the U.S. economy and military.These three countries also have beneficial foreign policies against North Korea and securing energy in many ways.South Korea and China are currently facing a series of unsold construction companies and development builders are struggling to fast on funds due to a slump in real estate and high interest rates, and are blocking oppression and external reporting with a blockade, calling for a labor strike (Korea). Japan’s economy contracted unexpectedly for the first time in a year in the third quarter of this year amid global recession risks, weak yen and rising import costs, hurting household consumption and businesses, adding to uncertainty about future prospects.Japan’s economy, the world’s third-largest, has been struggling despite the recent lifting of Corona controls, and pressure is intensifying due to hot global inflation, rapid interest rate hikes around the world, and the Ukrainian war.According to official data, GDP fell 1.2 percent at an annual rate during the three-quarter annual rate.This compares with a 1.1% increase predicted by economists and a 4.6% increase in corrections in the second quarter. This was interpreted as a 0.3% decrease on a quarterly basis, contrary to the forecast of 0.3% growth.In addition to being pressured by the global economic downturn and soaring inflation, Japan is dealing with the yen’s depreciation against the dollar to its lowest level in 32 years.The yen has raised prices for everything from fuel to food. All three countries are in a dark situation, but I wonder what kind of thoughts and situations the people will have
JENNIFER KIM
ASIA JOURNAL
