Bhubaneswar, March 18: In the wake of the strategic chokepoint at the Strait of Hormuz being reportedly shut by irate Iran in response to the unwarranted war waged against it by its sworn enemies-USA and Israel-in which Iran’s ex-Supreme Leader Ayatollah Ali Khamenei along with several other top commanders got assassinated as well as over hundred of innocent school children were relentlessly killed, most of the European and Asian countries dependent on imports of fossil fuel, natural gas and myriad of merchandise, are facing the music of economy at stake.
The trade conditions turning turbulent owing to the heavy hurting the halt of Hormuz has inflicted, it is all poised to have a greater impact on Europe and Asia.
Reports of Fidelity International warn far reaching consequences so far import-reliant economies are concerned and such a grim scenario giving birth to the risk of ‘stagflation’.
Fidelity International has reportedly highlighted that the stumbling block at the Strait of Hormuz has been staying put as a Himalayan hurdle for the “actual supply chain” let alone the “market fears”.
It has further being reported that the man-made “supply chain shock” is all set to spark off “higher inflation” and “weaker economic growth” globally.
The definition of the term ‘Stagflation’ in Economics states: “Persistent high inflation combined with high unemployment and stagnant demand in a country’s economy. It could impact finances, reduce purchasing power and investment returns as well as push up interest rates.”IAccording to a glaring instance given by certain experts in economics, “India’s post-pandemic (Post Covid-19 Lockdown/Restrictions) economic narrative presents a puzzling paradox: high inflation rates paired with stagnating economic growth. This condition, known as stagflation, is particularly concerning for a developing nation where employment generation and affordability are keys to inclusive growth.”
Also Read :- Is Hormuz The ‘Apple of Discord’ A Hard Nut To Crack By Dint Of War?
