Ausaaf Khan M.ECO
Ausaaf Khan M.ECO
BATCH: 2024-27
Introduction: The global economy faces significant uncertainties with slow growth expected in
major economies like China and the USA. Geopolitical tensions in the Middle East and a possible
shift towards protectionist trade policies add to these challenges. For India, these factors bring both
hurdles and opportunities, impacting vital macroeconomic indicators including inflation, trade
balances, and interest rates.
Current Case Description: The global economy is currently characterized by weak growth across
major economies, with particular concerns around China's slowing growth and the USA's modest
economic performance. The US Federal Reserve's potential interest rate cuts in late 2024 or early
2025 add another layer of complexity. Additionally, there is a growing trend towards protectionism,
with some countries considering tariffs and trade barriers, which could disrupt global trade
dynamics. The ongoing conflict between Israel and Hamas in the Middle East poses further risks,
potentially impacting global oil supply and adding to economic instability.
Alternative Details:
1. Global Economic Slowdown: Major economies like China and the USA are experiencing
sluggish growth, creating an uncertain global economic landscape.
2. China's Economic Hurdles: China faces slowing economic expansion due to challenges in
its real estate sector, demographic changes, and reduced export demand.
3. Economic Strain in the USA: The USA is grappling with slow growth, high inflation, rising
interest rates, and possible Federal Reserve rate cuts in late 2024 or early 2025 to spur
growth.
4. Emerging Protectionism: Many nations, particularly the USA, may embrace protectionist
trade policies, including tariffs and barriers, disrupting global trade and forcing a re-
evaluation of supply chains and agreements.
5. Geopolitical Instability in the Middle East: The ongoing Israel-Hamas conflict threatens
global energy supplies and trade routes, potentially causing oil price hikes and increased
market volatility.
6. Impact on International Trade and Supply Chains: Weak economic growth, protectionist
policies, and geopolitical tensions may lead to global supply chain disruptions, increased
production costs, and a shift towards more localized manufacturing.