Leading economies have been afflicted with new problems over the past year. The United States (US) is struggling with both, supply-chain blockages and a critical shortage of baby formula. The European Union (EU) faces the threat of scarce energy supplies, owing to sanctions on Russian fossil-fuel exports. And almost all countries are experiencing high inflation. Some have blamed these problems on excessive dependence on international trade, that is, globalization.

Sri Lanka closed schools and halted non-essential government services on Monday, starting a two-week shutdown to conserve fast-depleting fuel reserves as the International Monetary Fund (IMF) opened talks with Colombo on a possible bailout.The country of 22 million people is in the grip of its worst economic crisis after running out of foreign exchange to finance even the most essential imports including food, fuel and medicines.On Monday schools were shut and state offices worked with skelet

Stock markets sank Thursday as more central banks hiked interest rates in efforts to tame runaway inflation, actions that raised fears they could spark recessions.One day after the Federal Reserve's (Fed) biggest United States (US) interest-rate hike in nearly 30 years, the Bank of England (BoE) raised borrowing costs to their highest level since the 2009 financial crisis.The BoE jacked up its rate by a quarter-point to 1.25 percent, its fifth straight increase, but it was lower than the

Global equities, oil prices and bitcoin plunged Monday on heightened recession fears triggered by runaway inflation.The dollar, however, gained versus major rivals, benefiting from its status as a haven investment and expectations of aggressive interest-rate hiking from the Federal Reserve (Fed).Bond yields also rose, with 10-year United States (US) Treasuries above 3.3 percent and Italy's 10-year debt breaking four percent for the first time in more than eight years.The US currency stru

The Organisation for Economic Co-operation and Development (OECD) warned Wednesday that the world economy will pay a "hefty price" for Russia's invasion of Ukraine as it slashed its 2022 growth forecast and projected higher inflation.The Paris-based organisation, which represents 38 mostly developed countries, is the latest institution to predict lower gross domestic product (GDP) growth due to the conflict, which has sent food and energy prices soaring.In its latest economic o

Asian markets rose Monday as investors rediscovered some verve after the release of healthy United States (US) data and as China eases some of its strict COVID curbs in Shanghai and Beijing, lifting hopes for the world's number two economy.The gains extended a positive end to last week for global equities with some commentators saying there was a growing hope that the months-long sell-off may have run its course.Wall Street provided a strong lead and snapped a series of weekly losses, wi

The United States (US) dollar is up 12 percent against the euro over the past year and, at €0.93, is approaching parity. If prices of oil and other commodities now seem high in dollar terms, they look even higher in euros.

The Association of Southeast Asian Nations (ASEAN) will play host to global leaders later this year with ASEAN Summits in Cambodia, the B20 and G20 Leaders’ Summit in Indonesia and the Asia-Pacific Economic Cooperation (APEC) Economic Leaders’ Meeting in Thailand, all happening back-to-back.With the changing face of geopolitics and the global economy, these meetings and the preparations in the lead up, will shed light on where ASEAN stands in its on-going recovery efforts from COVID-19 and ho

Asian equities were up on Monday after a rally on Wall Street last week, but analysts say fears of a recession due to surging inflation and COVID-driven supply chain woes still have investors worried.World markets have been volatile for much of 2022, fuelled by uncertainty over supply chain snarls due to China's lockdowns, inflation pressures and European anxiety over the Ukraine war.Wall Street stocks closed Friday with a robust rally on tech-rich Nasdaq after a tumultuous week that saw

Until a few years ago, major economies were struggling to achieve even mild inflation, with policymakers in the United States (US), the United Kingdom (UK), and the eurozone struggling to meet their targets of two percent annual price growth. But with the arrival and persistence of COVID-19, the world changed dramatically.