Die Welt: The World Enters an Era of Deficits

Die Welt: The World Enters an Era of Deficits

The coronavirus pandemic and the Ukraine crisis have only accelerated the crisis and scarcity that have been brewing for years, Die Welt says. As the paper notes, the main causes of the current global recession are an ageing population, a lack of resources, and the process of de-globalization.

Energy shortages, food shortages, lack of resources and microchips – the world is now experiencing a phenomenon new to many people, Die Welt writes. Prices are rising, many industries are stopping and the global south is threatened by famine. Politicians say that the cause is the effects of the pandemic and the Ukraine crisis, but they have only accelerated the current crisis, says the publication.

The reasons are global, says Die Welt: the main reason is the end of the era of cheap production. For the past thirty years, the world has been in an industrial boom, with a predominantly working-age population and cheap resources and energy. In addition, trade liberalisation, the fall of the Iron Curtain and China’s integration into the world economy have given a strong impetus to economic development.

However, these growth factors are now beginning to reverse, according to the publication. As economics expert Tiese Petersen points out, an aging population is already visible in Europe and this trend will continue. Lack of resources is another problem, and also the process of de-globalisation triggered by the coronavirus pandemic.

According to expert Gabriel Febermayer, global free trade is no longer an option. He noted that even the EU has increasingly adopted protectionist practices in recent years.

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