Trade Wars and Global Economic Uncertainty
As we move deeper into 2025, the global economy is facing growing uncertainties that are reshaping financial markets and business dynamics worldwide. The escalating trade tensions between the US and China have significantly disrupted international trade flows, while geopolitical conflicts in regions like West Asia and Eastern Europe are adding even more complexity. At the same time, global demand has weakened, leading to softer crude oil prices, which are in turn influencing inflation trends across economies. According to the UN Trade and Development Agency, there are signs of a looming global slowdown, with projected growth falling from 2.8% in 2024 to 2.5% in 2025. Looking back, the 2018–2019 period saw similar challenges when the US imposed tariffs, triggering ripple effects in India: the rupee weakened, inflation rose, and lenders tightened credit policies, especially in sectors sensitive to global movements. Today’s trade dynamics echo those past pressures, particularly give...