Governments can't take their resilience for granted
Somewhat unexpectedly, the global economy has weathered the challenges of the past few years extraordinarily well. Following the pandemic, shock followed shock — Russia’s war on Ukraine, Washington’s rejection of rule-based liberal trade, then most recently the war with Iran. Any one of these might’ve led you to expect a severe economic setback, let alone all three combined. Yet global output…
Contrary to expectations, the world economy has demonstrated remarkable resilience amid a series of global crises over the past few years. Notwithstanding the COVID-19 pandemic, Russia's invasion of Ukraine, Washington's abandonment of rule-based liberal trade, and Iran's ongoing conflict, the global output continued to expand. The International Monetary Fund's latest World Economic Outlook attempts to explain this phenomenon and cautions that governments should not take this resilience for granted, as there are limits to its endurance.
The IMF's economists have been taken aback by the system's extraordinary resilience and have consistently underestimated the annual growth forecasts since 2023. Despite the varying degrees of success, the prevailing trend now favors countries such as the United States, which possess two crucial attributes: limited exposure to energy markets and a stable fiscal policy.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- Governments can't take their resilience for granted koreatimes.co.kr
