The global economy remains on a slippery slope with the possibility of an upcoming market crash due to varied macroeconomic factors. The foreseeable future is grim and could affect the global economy in several ways leading to job cuts. Economic distress could spill over the world making day-to-day life become an expensive affair. In this article, we will highlight the three possible risks that the global economy will have to confront in 2024.
3 Risks the Global Economy Will Have To Battle in 2024
- Rising Geopolitical Tensions
The conflict in the Middle East between Israel and Palestine could dampen the global economy if many other countries involve themselves escalating the tensions further. Oil prices will be the first to be affected leading to higher costs of purchase per barrel. The effects will spill over the global economy making gasoline expensive. Additionally, the conflict in the Red Sea is concerning as Houthi rebel groups are disrupting trade in an intention to affect the global economy.
- China’s Stock Market Crash
China’s stock market is staring at an unprecedented crash that could shed trillions of dollars overnight. In the last 14 alone, China’s stock market has wiped away $1 trillion. Foreign funds are experiencing an exodus leading to the stock market losing balance. In addition, China’s largest real-estate giant Evergrande has been ordered to liquidate $300 billion by a Hong Kong court. A fallout in China’s stock market will affect the global economy as the Communist country has close ties with other nations.
- Uncontrolled Inflation
Uncontrolled inflation is a serious concern around the world affecting billions of people. Rising costs of real estate are leading the middle class to forget the dreams of owning a home. Inflation is making mortgage rates spike leaving no room for the middle class to afford a decent home. Property prices are skyrocketing with wages not catching up with the pace. The development could affect the global economy putting the real-estate sector in limbo.