Global Economic Pain to Increase in 2023 Following Dark Year

World economy was expected to rebound in 2022, but was marked by a new war, inflation, and climate-related disasters . Climate change has caused $268 billion in economic losses so far in 2022, according to Swiss Re .

Paris: Following the Covid pandemic, the world economy was expected to rebound in 2022.Instead, it was marked by a new war, record inflation, and climate-related disasters.It was a polycrisis year, as historian Adam Tooze predicted.Prepare for more gloom in 2023, according to Roel Beetsma, professor of macroeconomics at the University of Amsterdam.

However, Russias invasion of Ukraine in late February has sent energy and food prices skyrocketing.Many countries are now grappling with cost-of-living crises because wages are not keeping up with inflation, forcing households to make difficult purchasing decisions, according to Nicole Eisermann from her stand on the Frankfurt Christmas market.According to a survey published by the Organization for Economic Cooperation and Development, interest rates in the 27-nation European Union increased by 674 billion euros this year, with one in every two Germans now spending on household items, according to a survey by the OECD.Economists cautioned that policy must continue to tighten as a result of rising interest rates.The UK economy is now sluggish.S&P Global, a rating agency, forecasts stagnation in the eurozone in 2023.

The OECD estimates a 2.2 percent growth rate for the global economy, but China's zero-Covid approach stifled growth in the world's second-largest economy, but authorities have started to relax controls following widespread demonstrations.Climate impactsThe biggest issue for Beetsma is climate change, which has caused $268 billion in economic losses so far in 2022, according to reinsurance giant Swiss Re.Hurricane Ian alone costed an estimated insured loss of $50-65 billion this year.Despite the need to reduce greenhouse gas emissions and slow global warming, governments in Pakistan convened at the United Nations climate talks (COP27) in Egypt in November to establish a fund to help combat the damage and economic harm caused by natural disasters.If we don't do enough, we will miss out on a massive scale.Featured Video Of The DayVideo: After BJP's super surge, Gujarat Congress takes down the countdown clock.

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