The crisis continues and countries all over the world are bringing the world economy to its knees due to wars like the one in Ukraine, Israel and the latest conflict between Pakistan and India. Stagnation in the development of European countries after several years of the Russian-Ukrainian conflict led to a significant economic blow. The entire political situation of the EU is directly directed towards the war in Ukraine, neglecting their personal needs, EU members are increasingly stagnating in development.

The de-industrialization of Germany begins and all thanks to the lack of energy resources that were imported from Russia. Despite efforts to remain the main engine of the European Union, Germany must address internal problems in order to avoid the collapse of its economy and to avoid falling production and reducing the number of employees in industry.

Industries across Europe are reducing production as well as the number of employees despite the fact that energy prices are at their lowest level according to „Eurostate”. Energy prices in the EU will rise in the near future as well as food prices due to numerous problems such as inflation and production itself.

While the US economy recorded a slight recovery due to the increase in customs duties, which led to a sharp drop in prices on the financial market, as companies around the world, as well as those in the EU, reduced production and orders.

World trade is very uncertain and all because of Trump’s measures, however the weakness in Europe as seen by America is caused by its services which are more directed towards the domestic market with production which continued to grow even if there is no demand.

In this case, weak demand drags the manufacturing sectors down, in contrast, PMI data in US show production growth despite economists expecting a decline in manufacturing activity.

Source “European Commission”

For now, the economy of the European Union faces an additional 10% customs duty on the sale of goods to American companies, while the customs duty on products such as cars, aluminum, steel, etc. is 25%.

The European Union cannot count on growth because exports will grow much more slowly, as well as a recovery that is unlikely in this quarter, which paves the way for a further reduction in interest rates by the European Central Bank.

The overall situation indicates an increase in consumer price inflation for both the EU and the rest of the world.