What dream has 2022 seen for the world economy?
News_Code: 355646 1/15/2022 11:53:47 AM
What dream has 2022 seen for the world economy?
2022 will be a year of change, such as moving away from a hydrocarbon-based economic system, overcoming the Covid-19 plague, or ending the expansionary policy period by central banks.
 

According to Reuters, this year will see dramatic changes across the globe that will shape markets, corporate finances, politics, and the economy.

Steps are needed to advance these goals, albeit if it takes years or even decades to achieve them. The transition from this period is like moving towards renewable energies is inevitable. Investors and entrepreneurs who can adapt to the changes will benefit the most. However, there are difficulties in this path without social inclusion.

Efforts by governments and corporations to reduce carbon emissions to zero by 2050 or sooner to limit global warming to 1.5 degrees celsius will continue to dominate the financial and commercial outlook for 2022. Moving away from coal, gas, and oil is a priority, but every sector, including heavy industries such as steel and cement, transportation, agriculture, and banking, will soon have to make big commitments to meet the ambitions of the next generation.

While inflation has calmed down for decades, central banks need to amass facilities that have far-reaching implications for the cost of capital (increasing it!) and the price of money. Of course, the money itself will undergo a period of transformation as the Federal Reserve, the European Central Bank, and other monetary authorities try to keep up with the emerging dynamism of digital and cryptocurrencies.

With the constant threat of new and more dangerous directions, the third year of the epidemic is rapidly moving towards the digitalization of everything. The winners and losers of these changes will become more apparent in 2022. Monopolies such as Amazon, Meta, formerly known as Facebook, Alphabet in advertising, and Microsoft were boosted by the extraordinary government forced closures. Governments are facing a tumultuous year to regulate these multibillion-dollar giants.

Even as people return to normal, the consequences of the epidemic in communication, education, travel, and social interaction are constantly changing the work environment and productivity. It has implications for the nature of work, ownership, urban planning, and beyond. It also creates new challenges for leaders, none of whom have been trained to run large organizations with distanced employees.

The growing Cold War between the United States and China will affect international trade and geopolitics. Tensions over the sale of US nuclear submarines to Australia and the unexpected US withdrawal from Afghanistan give an overview of the rugged nature of the Western alliance. With Xi Jinping in office for a third term as President of China, US President Joe Biden has the chance to achieve some de-escalation to work on climate change, epidemics, and other priorities.

Success in this transition requires extraordinary social inclusion. Governments, corporations, and taxpayers (especially the wealthiest) must actively prepare for the sacrifices needed to prevent global warming while providing greater justice, financial inclusion, and social justice. Failure to do so will lead to civil unrest or worse. In addition to trade, these unrests are destroying more existential goals, such as limiting global warming, the detrimental effects of which will be disproportionately burdensome on the world's poor.