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“Countdown to Cimmerian Chaos: Three Charts to Monitor Impending Doom

The global economy is in serious trouble. As pandemics, recessionary trends, and geopolitical tensions increase, it is essential to stay abreast of and track the data that will shape our immediate future. To effectively navigate our current economic landscape, here are three economic charts that must be tracked in order to identify potential impending doom. The first chart to closely monitor is world economic growth. What we have seen of late with the Coronavirus pandemic has put an immense brake on global economic growth. This can be easily seen by looking at the World Economic Outlook forecasts from the International Monetary Fund (IMF). Through December 2020, the IMF forecasted global economic growth to be at -3.5%. Sure, we need to consider potential upturns in the coming years, but if the trend continues to waver, prolonged recovery could be impeded even further. Next, we must look toward other economic indicators, such as inflation. Inflation of course can have a significant effect on economic health. Low inflation reflects a healthy rate of economic growth, while high inflation can impede economic growth. According to The Times, inflation reached 6.8 percent in December 2020. This increased rate is primarily due to an increase in the cost of energy and food. Again, if this trend continues, recovery will be hard to come by. Finally, we need to be mindful of global debt. In December 2020, the Institute for International Finance reported that global debt levels had risen to all-time highs, standing at an astonishing $281 trillion. Of course, such a high level of debt may be concerning, considering the current economic contraction. If debt levels exceed the growth of income and production, future economic stability may be at risk. Understanding the current economic situation is a daunting task, but staying up-to-date with the most important economic charts can provide a measure of insight into looming issues and impending doom. Through tracking global economic growth, inflation rates, and global debt levels, we can better prepare for the economic headwinds to come.