According to most analysts, the global economy is currently experiencing a profound crisis. Such a sharp decline in economic activity was last seen in 2008.
The last 15 years have witnessed a buildup of enormous imbalances in the global financial system. This threatens serious problems and massive failures in most sectors of the economy.
Notably, a crisis is characterized by the elimination of accumulated imbalances in the structure of the global (less often - national) economy. It makes it possible to form a new structure of assets and their value as well as strike a balance in the capital market.
Earlier this year, experts believed that the global economy would be able to avoid the crisis, while the European and US economies would gradually recover. However, that was not the case. In early March, things changed drastically after a number of major banks in the US and Europe collapsed. Many assets lost value and businesses faced a capital loss.
In early 2023, the International Monetary Fund published a bleak global growth outlook for the next 5 years, marking the weakest rate of growth in three decades. The IMF projected that the global economy could grow only by an average of 3% over the next five years due to high interest rates, International Monetary Fund Managing Director Kristalina Georgieva said.
