October 10, 2023
- The sudden war situation is disrupting supply chains and existing business transactions.
- Forceful migration is burdening the neighboring countries.
- Recovery is costing more than in the pre-war situation.
- Fear of spreading pathogenic viruses rises as the war creates wreckage all around.
The world is getting closer to chaos when we hold a cup of tea and relax on our couch. The war is spreading like a routine in several parts of the African and Asian continents. According to the GENEVA ACADEMY OF INTERNATIONAL HUMANITARIAN LAW AND HUMAN RIGHTS, there are 110 ongoing armed conflicts across each continent. Middle-East and South Asian countries have been burning for a long time. Now, the European countries have joined this list with the Ukraine-Russia war, which began in February 2022. These regions are crucial in terms of economic sustainability. Hence, the war is crippling economies due to these man-made disaster events.
Countries Majorly Affected Due to Armed Conflicts
India, the Philippines, Myanmar, and Afghanistan are the most affected countries in Asia. Israel, Egypt, Syria, Iran, Iraq, and Yemen are under serious civil war or terrorist insurgencies in the Middle Eastern region. Burkina Faso, Cameroon, the Central African Republic (CAR), the Democratic Republic of the Congo, Ethiopia, Mali, Mozambique, Nigeria, Senegal, Somalia, South Sudan, and Sudan are the most affected armed conflict African nations. Mexico and Colombia are two American nations facing drug cartel conflicts that are affecting their economic sustainability.
Impact on the Global Economic Cycle
The Ukraine-Russia war has created a major power and economic shift. The global supply chain got disrupted due to crude oil and food security. Now, inflation is rising across continents. Even the USA and Canada are experiencing economic slowdowns.
Headline inflation in Europe grew from 0.3% in 2020 to 2.6% in 2021 and then to 8.4% in 2022. More than two-thirds of the 2022 record-high inflation was attributed to energy and food inflation. While energy inflation was by far the most major source of inflation in 2022, food inflation has recently contributed the most. Food prices climbed 14.1% in January 2023 compared to the previous year. Because food production requires a lot of energy, the high rates of food inflation are a result of the indirect and delayed impacts of high energy prices, which the conflict has exacerbated.
Even though it is far from war land, Australia may face an economic slowdown due to high-interest rates and global uncertainty.
New War Zones Coming Up
The problem does not show any signs of slowing down, as the battlegrounds are increasing every month or quarter of the year. Since 2020, there has been a war between Armenia-Azerbaijan, Ukraine-Russia, the Taliban acquiring Afghanistan, and the India-China standoff at multiple border fronts.
The recent war declaration between Israel-Palestinian terror group Hamas has created new tensions in the Middle East. This could crumble the global supply chain as it passes through the region.
Several security experts have predicted that China may invade Taiwan sooner or later in 2024. The war is crippling economies, and there has to be a quick reaction from responsible authorities and agencies to keep them under control.
No one knows what we are expecting in the coming days. It will be crucial to closely observe and monitor how the situation may change. Till then, all the government bodies and security agencies need to stay ready for the unprecedented events.
Also Read: iPhone 15 Heating Issue: Apple Releases New Software Update to Fix the Overheating
