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One of the reasons why there is a global economic growth slowdown is because of the high inflation rates in different countries. This results to the price level in the economy to fluctuate and in some cases, the currency value can even fluctuate up and down. When the price level in the economy rises, there would also be an increase in demand as well, forcing the country's central bank to intervene and change the interest rates and loosen the monetary policy.

With the global economic growth slowdown, the currency value has been greatly affected. In addition, there is a shortage of capital all over the world leading to a situation where money is not easily available to some countries and sometimes, the money is even hoarded by some individuals. Thus, inflation occurs. There will be a significant amount of fluctuation when it comes to the value of the US dollar, UK pound, and Euro at any given point in time. Another factor is the trade deficit.

The global economic growth slowdown can be attributed to the lack of global trade. A lot of people depend on shipping companies to transport goods from one country to another. When the demand for goods is high, there is a high import as well. Because of this, the government must interfere to keep the imports and exports balanced out in order to prevent the economy from being influenced.

Another factor that causes global economic growth to slow down is the environmental concern. There is a tendency for governments to restrict the use of certain resources. This has a great impact on the global economic growth because some countries have to import raw materials such as oil in order to produce other products that can be sold around the world. The import duties are very high causing shortages in some countries. Also, some countries tend to export their raw materials in order to make their own products, which leads to other countries imposing trade restrictions. It is really difficult for a country to survive if they are not able to export anything.

Another problem is the political stability. The international community relies on the stability of the country to help ease global problems such as poverty and health problems. If a country is not at par with what the rest of the world is doing, it will be hard to receive assistance from the international community and will lose credibility in the eyes of investors. Globalization . . . . . . has created so many opportunities for the global economy. If countries do not take advantage of the opportunities and do not promote it, then it will be difficult for them to maintain the high level of global economic growth.

This is what 6 could hold for the global economy VOXLACEA - global economic growth slowdown
This is what 6 could hold for the global economy VOXLACEA – global economic growth slowdown | global economic growth slowdown

Global economic slowdown in 6 is healthy necessity - Saudi Gazette - global economic growth slowdown
Global economic slowdown in 6 is healthy necessity – Saudi Gazette – global economic growth slowdown | global economic growth slowdown
Global economic slowdown in 6 is healthy necessity - Saudi Gazette - global economic growth slowdown
Global economic slowdown in 6 is healthy necessity – Saudi Gazette – global economic growth slowdown | global economic growth slowdown
Daily chart - The world economy is slowing down Graphic detail - global economic growth slowdown
Daily chart – The world economy is slowing down Graphic detail – global economic growth slowdown | global economic growth slowdown
Daily chart - The world economy is slowing down Graphic detail - global economic growth slowdown
Daily chart – The world economy is slowing down Graphic detail – global economic growth slowdown | global economic growth slowdown
Chart: Economic Slowdown Felt Around the World Statista - global economic growth slowdown
Chart: Economic Slowdown Felt Around the World Statista – global economic growth slowdown | global economic growth slowdown