Reflecting the Mind of the Vatican since 1850
The World Economy Emerges From Covid And Goes To War
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We are going through a time of great uncertainty. For more than two years, the pandemic has been shaking the foundations of the world economy. No one could have foreseen or anticipated the impact on the production of goods, as well as on transport. In addition, in recent months there have been continuous tensions in energy markets, which are going through a difficult and costly transition to carbon neutrality, as well as with raw materials, whose prices are soaring due to increasing demand.

If all of this was already causing a perfect storm, the landscape became even more gloomy after the Russian invasion of Ukraine. The first disastrous economic consequences are there for all to see, and it is to be expected that they will accentuate the process toward a new world order.

The pandemic has highlighted the limits inherent in ultra-liberal globalization, on which the production model has been based until now, as well as the risk of worrying dependence on the Chinese colossus. The latter, for its part, is working to become increasingly self-sufficient, without losing the predominance it has acquired in world markets. The consequence will probably be a decoupling of the Chinese and U.S. economies. If sanctions consolidate Russia’s economic isolation, the world outlook will change dramatically. What will become of the Belt and Road Initiative, China’s “New Silk Road”? Are we moving toward a globalization redefined by increasingly independent regional trade blocs, which, alongside economic motivation, also take into account ethical and security criteria? In these pages we will try to reflect on the new situation we are about to face.
© Union of Catholic Asian News 2022
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