In the news article, Richard Partington discussed how the International Monetary Fund (IMF) predicted a lower economic growth for 2022. The author discussed the rationale for the low predictions. The lower economic growth is due to the inflation caused by the Ukraine invasion. The war has compromised supply chains and led to higher consumer prices and inflation rates. On top of this, the pandemic has also not stopped compromising world economies. Shanghai, for instance, is locking down to prevent the virus from spreading. It would mean that many factories based in Shanghai would have to stop their operations and compromise supply chains.
The article did not use speculations and focused on delivering information backed by relevant sources. The publication has hyperlinks that lead to other news articles. When discussing the Shanghai lockdown, it cited another news that covered the event. Thus, it allows readers to read deeper into the topic and verify the claims for themselves. However, the cited news articles are mainly from the same news publication. Thus, they may agree and support each other because they came from the same news publication. The author could have improved its credibility by linking outside sources.
The article elaborated its message accordingly and allowed general readers to understand the context of the economic challenges. For instance, when saying how Putin's invasion caused rising commodity prices, Partington elaborated on why this happened. He explained the roles of these two countries and how their products are critical in the world's supply chain. He discussed it without using technical and intimidating statements that may lead the readers to confusion. The article also discussed how the Shanghai lockdown could worsen the world economy. It provided a clear explanation of why this lockdown may challenge companies and fuel the rising inflation.
https://www.theguardian.com/business/2022/apr/14/imf-lower-global-growth-forecasts-ukraine-war-covid
A war can destabilize economies and with the involvement of Russia, the situation is even worse. There is potential threat to consumer confidence due to potential involvement of US and China in the war. Hence it is only likely that growth rates will decline in the future.
ReplyDeleteGiven the pandemic and the war, growth rates are going to continue to decline as both those things create fear in the economy and fear hurts the economy. Shanghai's lockdowns will hurt the world economy due to China having such a large and open economy with many other countries involved with their production, trade, etc.
ReplyDeleteNo one knows when the war In Ukraine will end. However, it will take time for both sides to recover from it. It is not shocking that IMF forecasted lower global growth.
ReplyDeleteThe war itself did enough damage, but China's lockdowns on top of it stopped 14% of their population from consumer spending because they were all locked in.
ReplyDeleteIt is not surprising to me that the IMF is now forecasting lower economic growth for 2022. Because of the many events going on in the global economy, like lockdowns, the war and high inflation, with no end in sight for any of these things, it is easy to see why the IMF thinks that global growth will be lower this year than they previously predicted.
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