Unfolding World Economy
Last decade was an eventful period for the global economy. Because, all countries having advanced economies suffered their worst economic and financial crisis. Let’s take a look back in the last ten years where several happenings surrounded the Great Recession…one of the world crisis.
2011 – Tsunami and Nuclear Disaster in Japan
Japan’s tsunami on March 11, 2011, lead to death of at least 28000 people and over 465000 were missing. 9.0 magnitude earthquake and 100-foot high tsunami-damaged Fukushima Nuclear Power Plant resulted in radioactive leaks. Japan’s suppliers also shut down due to ‘Triple Disasters’ and slowed down the global economy which is still recovering from the 2008 financial crisis.
2014 – Obama care adds coverage for 20 million
United States received a better score from the World Health Organization to provide low-cost preventive care for chronic illness. Affordable Care Act helped health coverage to around 20 million people which results in low cost of health care.
2015 – World’s largest economy-China
In 2015, China became the world’s largest economy putting the European Union second and the US third. It is also the largest holder of US debt owning $1.2 billion of US treasuries which provides leverage.
2015 – Debt crisis of Greek
The Greek debt crisis, in 2015, defaulted its debt and exited the eurozone activating the Eurozone debt crisis. It creates the fear of a global financial crisis. Although, Greece’s debt crisis resolved but left the European Union into an accountable situation. It is one of the world crisis.
2017- Hurricane Harvey hit Texas
Hurricane Harvey, category 4 storm hit Texas on August 25, 2017, caused damage of around $180 billion which was more than any other natural disaster in the history of US. After the Hurricane Katrina, Hurricane Harvey affected 13 million people from Texas.
2018 – Cost of war on terror escalates US Debt
After the 9/11 attack, increment in defense spending was shown in Afghanistan and Iraq. The War on Terror increased the defense budget deficit creating an annual deficit of $500 billion per year in 2006. Debt doubled to $9.2 trillion by 2007 and by 2018, it increased by $2 trillion.
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Furthermore, events like Brexit and disarray in the global value chain taking place in the current scenario are affecting the economy of the planet and with no specific direction to tackle the upcoming catastrophes.