The European Union’s (EUs) economy is only about 1 percent bigger than it was a year ago. And inflation, at 2.3 percent in November, is close to the European Central Bank’s target of 2 percent. The prices of services across various member countries among EU have been rising by around 4 percent a year and there is sustained pressure from growing wages – the Netherlands, which has the most up-to-date figures, estimates these as rising at 6.5 percent.
Tag: Economy
Decoding the Economy of an Isolationist Country
Being one of the most isolated, secretive, dark and censored countries in the world, North Korea continues to baffle audiences and surpass trends of journalistic opportunity. It has one of the largest militaries in the world, a staggering domestic infrastructure and much speculation as to what goes on inside the closed-to-exhibition country. The citizens aren’t allowed to venture outside and no official economic data has been published since 1965, which is both scary and bold at the same time.
Social Capitalism: A Theoretical Commentary
Can “capitalism survive” and “socialism work” individually? These two hypotheses and discussions travel among economic debates around the world. Austrian Economist Joseph Schumpeter’s work in entrepreneurship and innovation signifies the deviation from traditional or conventional methods of economic activities, particularly in terms of trade and increased quality of life. This article draws attention towards the global thought of social capitalism; and enables enthusiasts in economic affairs and international relations to understand the theoretical overview of this distinctive concept.
How can China Respond to Trump’s New China Policy?
During his campaign, President-elect Donald Trump promised to impose 60% tariffs on Chinese goods and services coming to the United States. This time, Beijing seems already strategising to retaliate against the upcoming tariffs from the second Trump administration. Trump’s proposed tariffs on Chinese imports could disrupt China’s export-driven economic model, which has driven the country’s growth over the past few decades.
Xi’s European Tour: Global Power Shifts and India’s Challenge
In these changing times, where every nation is trying to recalibrate its position according to its interests and the shifting power balances President Xi Jinping’s visit to France, Hungary, and Serbia has garnered observers of international politics their inquisitive seats of analysis. This comes when multiple conflictual clashes are building around the globe. The more than two-year war in Ukraine, the result of which seems to be elusive to the site, the Israeli siege of Gaza and its spillover effects in the region and the covert build-up of tensions between Israel and Iran distorting the current power status quo.
Impact of Israel-Hamas and Russia-Ukraine Conflicts on Stock Markets
Geopolitical conflicts have the potential to impact global stock markets through various economic and financial channels. Disruptions to energy and commodity supplies, increased market volatility, and heightened economic uncertainty can all weigh on investor sentiment and stock prices. Additionally, the potential for these conflicts to escalate and draw in other regional or global powers could further exacerbate their impact on the financial markets.
Integrating Oman and Egypt into the India-Middle East-Europe Economic Corridor
As the Israel-Palestine conflict persists, the India-Middle East-Europe Economic Corridor (IMEC), announced in the backdrop of the G20 summit held in Delhi in September, 2023, remains a non-starter. The resolution of the Israel-Palestine conflict is nowhere in sight. As opposed to delaying the implementation of IMEC until the crisis is resolved, the participating nations could look at additional routes that would connect India to Europe bypassing Israel. One such route can connect India to Europe via Oman, Saudi Arabia and Egypt, while the rest of the Gulf Cooperation Council countries can be connected to the corridor via branch routes.
We are Shifting Towards a Multipolar World
The landscape of international politics is constantly changing and posing a serious challenge to the existing global order for the last three decades. The emerging role of the different middle powers is key to shaping the power dynamics and has reduced the relative power of the U.S. and opened up the scope for emerging economies like China, India, South Africa, and Brazil. Robert Gilpin, a scholar of the Realism school, opined that the global order is a dynamic reflection of shifting power dynamics among states, historically marked by conflicts and restructuring the power equations.
US Reports Reveal that China is Aiding Russia’s Military Expansion
According to an assessment by US officials, it is revealed that China is playing a significant role in the military expansion of Russia, particularly in its efforts in the war against Ukraine. China has been increasing its sales of various technology and equipment to Russia, which Moscow will use to build up its military arsenal. China has been the major supplier of microelectronics, machine tools, and other crucial technology to Russia. In 2023, around 90% of Russia’s microelectronics came from China, which is essential in the production of tanks, missiles, and aircraft. Additionally, over 70% of Russia’s machine tool imports came from China last year.
Hong Kong’s National Security Law and its Potential Impact on Foreign Entities
The new national security law a legislation under Article 23 has been passed in Hong Kong Parliament. This is the second in a row of national security laws since 2020. The legal personnel has feared that the new law shall broaden the scope of defining sedition and state secrets, with tougher penalties for anyone under conviction. The new law encompasses treason, espionage and external interference is being closely watched by foreign businesses. Notably, the most serious offences are sometimes punishable with life imprisonment, convicted of involvement with ‘external forces’.