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Latest global economic crisis analysis in 2025 with expert insights and actionable information

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Global Economic Crisis 2025: What's Behind the Ongoing Turmoil?

ElafSalsabila

Global Economic Crisis 2025: What's Behind the Ongoing Turmoil?

As 2025 unfolds, the global economy finds itself at a critical crossroads. Recent data from the International Monetary Fund (IMF) indicates that global GDP growth has slowed to just 1.3%, marking one of the lowest points since the 2008 financial crisis. With inflation still lingering in major economies and geopolitical tensions mounting, many experts are warning that we may be entering a prolonged era of economic instability.

Main Drivers of the Crisis

  • High Interest Rates: Central banks worldwide, including the US Federal Reserve and European Central Bank, have maintained elevated interest rates in a bid to curb inflation. However, this has drastically slowed consumer spending and business investment.
  • Global Supply Chain Disruptions: Ongoing conflicts in Eastern Europe and trade disputes between China and the U.S. continue to hinder the global movement of goods.
  • Debt Accumulation: Developing countries, in particular, are facing debt crises as their currencies weaken and external loan repayments become unsustainable.

Sector-by-Sector Impact

The energy sector remains volatile, with oil prices fluctuating unpredictably. Technology companies have seen layoffs continue into the second quarter, while traditional manufacturing sectors are slowing due to weak global demand.

What Do Experts Predict?

Leading economists argue that the next six months will be crucial. "Unless global cooperation increases and interest rates begin to normalize, we are looking at another 'lost year' for global growth," says Dr. Lina Matthews from the London School of Economics.

Is There a Way Forward?

Some countries are turning toward strategic investments in green technology and digital infrastructure to cushion the impact. Fiscal policies supporting households and small businesses will also play a key role in recovery.

For deeper insight into how geopolitical events are amplifying economic uncertainty, read our recent article: Why Global Conflicts in 2025 Are More Economically Dangerous Than Ever .

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