Global conflicts, trade restrictions continue to pose growth risks

The Economic Survey 2024-25 released on Friday warned that increased geopolitical and trade uncertainties and risks linked to ongoing conflicts in Ukraine and West Asia can hit economic growth, inflation, financial markets and supply chains.

- Rezaul H Laskar

NEW DELHI:

The warning came against the backdrop of growing concerns about the imposition of tariffs and other punitive trade measures by the Donald Trump administration in the US, tensions between China and the US, and the continuing fallout of the Russia-Ukraine conflict and the fighting between Israel and Hamas in West Asia.

While referring to Trump's return to the presidency in the US less than two weeks ago, the document said: "The world has had an early inkling of policy changes that will affect the global movement of goods and labour."

The survey described 2024 as an "eventful year" that witnessed unprecedented electoral activity that saw more than half the global population voting in elections, even as the Russia-Ukraine and the Israel-Hamas conflicts increased regional instability.