Why is the world economy going down?

<p>The world economy is experiencing a downturn due to a combination of factors. One significant factor is the impact of the COVID-19 pandemic, which has disrupted global supply chains, forced business closures, and led to a decline in consumer spending. Lockdown measures and travel restrictions implemented to curb the spread of the virus have resulted in reduced economic activity and slowed growth in many countries. Additionally, trade tensions between major economies, such as the United States and China, have contributed to a decline in global trade and investment. Protectionist measures, including tariffs and trade barriers, have disrupted supply chains and increased costs for businesses, further dampening economic growth. Moreover, financial instability and market volatility, driven by factors such as excessive risk-taking and uncertainty, have added to the downward pressure on the global economy. Other factors, such as geopolitical tensions, income inequality, and environmental challenges, also play a role in the current economic decline. Addressing these issues requires coordinated efforts, effective policies, and international cooperation to restore economic stability and foster sustainable growth.</p>

<p id="isPasted">Global economic growth will slow even more in 2024 due to high-interest rates, increased energy prices, and a slowdown in the world's top two economies, a series of leading banks say.</p><p>Geopolitical risk and the wars in Ukraine and the Middle East could also contribute to a worsening global financial outlook, they warn.</p><p>Global growth could slow to 2.6% next year from 2.9% this year, according to a Reuters poll forecast. While economists generally agree the world will avoid falling into recession, they highlight the possibility of "mild recessions" in Europe and the UK.</p>