Russia’s invasion of Ukraine caused global food shortages, evident in the rise of the food price globally. Some countries are starting to practice removing tax from food imports, as you can observe from the news. The change in the global supply results in the price to rise. The chain reaction will be food insecurity, result in malnutrition, mass hunger and it will result in a lot of problems, after all it is the basic needs of human beings.
In case you are not aware, Russia and Ukraine produce 30% of the world’s wheat supply and – prior to the war. The price rose further up, due to India banning wheat exports now. Together with the energy price rise, it again will accelerate the inflation further up. Tesla Elon Musk recent says about US probably in recession that last up to 18 months is widely share, where half of chief executives in US warns of very, very high risk of US recession, if no this year, it will landing next year. For all businesses, it is all about preparing for recession and how to operate for that recession period that matters. Market is expected to change their behavior, as everyone can expect.
As most of the countries already spend on the COVID-19 pandemic economy stimulus for the past 2 years. The question of whether they can provide more for the coming economic rescue, recovery and rebuilding is a question, if you look into their current national debt level. Sri Lanka is now being a classic example, where more countries will encounter the similar situation.
Post COVID-19 pandemic with a lot of government stimulus spend is over, recession is expected, as market demand and supply mismatch. The recent war conflict in Europe as a new variable accelerates the hyperinflation now most of the countries are facing. The country that forced for higher minimum salary rate in the wrong timing, we can expect to see how it complicates further for those domestic contexts. Recession will trigger consumers in large fear to spend, and postpone for whatever major purchase, substituting what needs to be basic due to future uncertainty (except for those very wealthy people). Business supply will exceed demand, and adjustment for the production capability is needed, such as scale down production, less shift and result in unemployment rise. Financial crisis may trigger if an excessive bad loan is offered during the good time. That all the economic principle 101 everyone is known. More corruption cases are expected to rise due to both ends contributing to it, officer misuse of power in the form of money or authority to achieve their intent goal in illegal, dishonest or unfair ways. The higher perceived recession pressure makes the public more tolerant of a corrupt economy as you can observe from some countries. You can have a look at corruption perception index (CPI) to get the ideas for how countries score on how corrupt their governments.
As the world transitions toward the fourth industrial revolution (4IR) Industry 4.0, various emerging technologies from robotics and AI have huge potential to eliminate half, or maybe more of the traditional workforce. But for those who possess a modern workplace and future of work competency, you are in high demand, in particular you can adapt to the project economy.
E-SPIN Group in the enterprise ICT solution supply, consultancy, project management, training and maintenance for corporation and government agencies did business across the region and via the channel. Feel free to contact E-SPIN for your project requirement and inquiry.
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