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State of Western Economy
Starting in the year 2020, the economies of the world came under pressure, especially the western economy. This was caused due to various unforeseen global events that followed one after another. The turmoil started with the Covid-19 pandemic that hit the world. Two years later it was followed by the Ukraine-Russia conflict. The cascade effect of all these factors resulted in economic troubles. Although the entire world was adversely affected, greater disruptions were experienced by the western economy comprising mainly of the trans-Atlantic nations. These nations of the developed world mainly comprised of the USA, the UK, and the nations of Europe.

The reason for the high magnitude of economic disruption experienced by the western economy was among other factors largely exacerbated due to carelessness and fiscal indiscipline. During the Covid-19 pandemic period, while a large number of bigger economies of the global south exercised adequate fiscal prudence, the nations of the collective west resorted to imprudent fiscal measures like large and indiscriminate stimulus cash distribution among its people. They were reckless in opting for huge amounts of currency printing to achieve these objectives. This led to unsustainable quantitative easing, thus sowing seeds for a subsequent period of higher inflation. Perhaps, the situation could have been managed through corrective measures that they might have taken after the period of pandemic… However, that was not destined to be so.

As the Covid-19 pandemic began to settle down, the Ukraine-Russia conflict that started on 24th February 2022 upset the applecart. Thereafter, the western nations made economic blunders one after another. In a knee-jerk reaction driven by the insane obsession to contain Russia by destroying its economy, the west began to shoot itself in the foot. Economically ill-advised and reckless choices were made by the west. They chose to mindlessly impose a plethora of economic sanctions on Russia. These sanctions were not carefully considered. The only aim was to hurt Russia as hard as possible. In the process, the west completely forgot the basic laws of economics. If they had applied a cool mind before applying the sanctions, they would have known that these sanctions would never work. The west seemed to completely forget that, unlike other countries they sanctioned over the decades, Russia is virtually sanctions-proof due to it being very generously endowed with natural resources and agricultural production. In their adamance, the west ended up effectively sanctioning themselves with their own sanctions. After all, the free flow and supply of Russian commodities were essential for their own sustenance and wellbeing.

Check out the state of the western economy in the following graphs and tables that are maintained up-to-date on a monthly basis. Various economic indicators for Russia, the USA, the UK, and Europe are depicted below… While Russia despite the heavy sanction levied on them is doing fairly well, the collective western economy appears to be struggling and seems to be in an unhappy state. Read the Article World Order for a background on reality.

Gross Domestic Product - GDP (PPP) of top 15 world economies as on January 2023

Statistic: Russia: Inflation rate from September 2021 to October 2022 (compared to the same month of the previous year) | Statista

Statistic: Estimated change in consumer prices over the past week in Russia from January 10 to November 14, 2022 | Statista

Statistic: India: Gross domestic product (GDP) in current prices from 1987 to 2027 (in billion U.S. dollars) | Statista

Statistic: Monthly 12-month inflation rate in the United States from January 2020 to October 2022 | Statista

Statistic: Monthly Consumer Price Index (CPI) of all urban consumers in the U.S. from October 2021 to October 2022 (not seasonally adjusted) | Statista

Statistic: Annual growth of the real Gross Domestic Product (GDP) of the United States from 1990 to 2022 | Statista

Statistic: Inflation rate for the Consumer Price Index (CPI) in the United Kingdom from January 1989 to October 2022 | Statista

Statistic: Retail Price Index (RPI) in the United Kingdom from January 1987 to December 2022 | Statista

Statistic: Monthly growth of gross domestic product in the United Kingdom from January 2020 to December 2022 | Statista

Statistic: Harmonized index of consumer prices (HICP) inflation rate of the European Union from January 1997 to October 2022 | Statista

Statistic: Harmonized index of consumer prices (HICP) inflation rate of the European Union from January 2002 to October 2022, by category | Statista

Statistic: Harmonized index of consumer prices (HICP) inflation rate of the European Union in October 2022, by country | Statista
Find more statistics at Statista

List of Articles under this Section

  • 5 Stages of Grief - Collapsing Hegemony
    5 Stages of Grief - Collapsing Hegemony The 5 Stages of Grief that seems to be setting in with the gradual collapsing hegemony of the west are akin to the famously described 5 stages of grief by the renowned psychologist...
  • World Order
    World Order - The evolving economic trends The World Order is determined by sets of collectively agreed rules of engagement amongst nations that determine orderly trade transactions, allowing a smooth flow of goods and commodities....
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