Global Economy At Stake- Is It A Matter Of Concern?

There has been a lot of debate on the on going global slow down. It has affected countries worldwide. Recently IMF, has pegged the global growth rate to 3.3%, lower as compared to previous year of 3.9%. Likewise, countries across the globe has cut down on its growth rate. India too cut its growth rate to 7.3 from 7.6 in the previous financial term.

Global economic slow down has led to slow demand, leading to slow in supply chain. It is argued that the purchasing power of people has gone down due to various market fluctuations. Additionally, on the negative side, World bank, IMF, OECD etc has continuously downgrading the globla growth rate. It’s a matter of concern in terms of global economy. Sustaining and stabilising the ecocomic condition is the need of the hour by the government, international organisations and communities.

The slow down can be attributed to the following:

1. Trade war between China and USA.

2. Bre-Exit developments.

3. Political and Economic instabilities in African and Arab countries.

4. Protectionist policy by various countries.

5. Declining balance sheets of companies due to slow demand.

It is a matter of global concern, which needs swift action. Governments can infuse liquidity to boost the demand and consumption level. Apex bank should ensure safety form currency fluctuations. Export needs to rise, so that supply is continued. Apex should also keep the interest rates liberal for the economy to pick up. On the other hand, IMF can infuse liquidity in most vulnerable countries. Accommodative and liberal monetary and fiscal policy is needed. We can’t afford to witness another economic crisis, things should be tight and up to keep the global economy running.