Economist says wars force economic growth to decline, BRICS may hold solutions
Date
10/31/2024 7:52:28 AM
(MENAFN) Dr. Alaa El-Sayed, a Professor of Finance Economics at Cairo University, recently highlighted a concerning trend in global economic growth and sustainable development, with both indicators showing a decline. In an interview with Erem News, he noted that widespread conflicts and wars are leading many countries to reallocate budgets toward military spending, limiting resources for growth and social development. This shift is expected to impact global economic stability, with increasingly pessimistic growth projections anticipated for the coming years.
Despite these challenges, Dr. El-Sayed pointed out that the BRICS bloc may hold some solutions. As a diverse alliance encompassing multiple economies, BRICS has the potential to address conflicts and drive growth. The group’s multi-faceted approach emphasizes economic and strategic coordination, positioning BRICS as a force capable of fostering stability and progress in turbulent times.
The professor also warned, however, that BRICS’ potential to effect global change is not without obstacles. Any attempt by China to expand influence through BRICS initiatives is often countered by the United States due to ongoing strategic economic rivalries. This dynamic has led to increased tension that disrupts the global economy's recovery, which is still grappling with stagnation and economic contraction.
Moreover, Dr. El-Sayed expressed concern about an anticipated escalation in global conflicts, citing the intensified hostilities between Iran and Israel and the tensions on the Korean Peninsula. This trend points to a higher likelihood of recession and decreased growth, prolonging economic hardship for populations worldwide and signaling that recovery will be a long and challenging process.
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