New Delhi: Corona (Corona) epidemic is not yet completely over, there is another danger looming over the world. After Corona, now the world is facing inflation. Inflation has gripped many countries of the world and experts believe that the next 2023 will show more terrible days. According to a report, crores of people will become poor in 2023. That means millions of people will lose their jobs and will not have enough income to lead a normal life.
The world’s challenges on the economic front are not abating. Earlier the Corona Pandemic (Covid-19) created difficult conditions for economies around the world. Now the world is troubled by the effect of inflation and there is a threat of global economic recession. Meanwhile, the head of the International Monetary Fund, Kristalina Georgieva, has warned about inflation, which will add to the concerns of policymakers around the world. He clearly said that the next year i.e. 2023 is no less challenging and now due to the high level of inflation, crores of people across the world are going to be trapped in the clutches of poverty.
The year 2023 will bring more difficulties
The IMF Managing Director (IMF MD) gave this warning in a blog post ‘Facing a Darkening Economic Outlook: How the G20 Can Respond’. He said that this year is no less challenging, but next year the challenges will be more severe. Georgieva said in the post that the world currently sees no hope of relief from the high rate of inflation. The world is already facing the twin challenges of the Covid-19 pandemic and the Russia-Ukraine war. Meanwhile, the impact of inflation has increased the risk of recession.
There will be no relief from inflation for now
There will be no relief from the impact of inflation for now, he said, adding that the biggest concern is the high rate of inflation across the world. The ongoing fighting in Eastern Europe has added to it. Earlier, the IMF said in its April 2022 economic outlook that inflation, which has already reached high levels, will remain problematic for a long time. According to IMF estimates, the inflation rate in advanced economies may remain at 5.7 percent during the year 2022, while the rate is expected to increase to 8.7 percent in developing countries. Such is the current situation of inflation in the country and the world.
For the first time since 1998, inflation in India has gone this high
Let us tell you that almost all the countries of the world, including India and America, are struggling against record inflation. Inflation in India has started to moderate, but is still at high levels for many years. The rate of wholesale inflation in the month of June (wholesale inflation June 2022) was 15.18 percent. This is down from 15.88 percent in May. Compared to a year ago, inflation is still slightly higher. The wholesale inflation rate in June 2021 was 12.07 percent. This is the third consecutive month that the wholesale inflation rate has exceeded 15 percent. The wholesale inflation rate rose to 15.08 percent in April 2022. After this, the wholesale inflation rate set a new record in May. However, there are signs of relief due to some softening in the June figures. This is the first time since 1998 that the wholesale inflation rate has exceeded 15 percent. At the same time, retail inflation (June 2022) stood at 7.01 percent in June, down 0.3 percent from May. Retail inflation was 7.04 percent in May. However, retail inflation has been above the target set by the Reserve Bank of India (RBI) for the sixth consecutive month. The retail inflation rate was 7.79 percent in the month of April. As for America, the country with the world’s largest economy, the inflation rate rose to 9.1 percent in June, which is the highest in the last 41 years.
China’s economic situation is alarming
Georgieva said that this high rate of inflation could spoil the recovery in the global economy after the Covid pandemic. He appealed to all countries of the world to take all possible measures to control inflation. He said central banks are increasing interest rates and this could prove useful in controlling inflation. He wrote in the post that in the last one year i.e. from July 2021 till now, 75 central banks around the world have increased the interest rate by an average of 3.8 times. The head of the IMF said about China that the state of the economy there is worrying. A slowdown in the economy in China could make the situation worse than current estimates.