These Are the World's Most Expensive Cities

Economic

Summary:

EIU's cost-of-living index shows where prices are highest.

The global cost-of-living crisis that began in 2022 is now so much part of daily life that it is entering the vernacular. “Cozzie livs”, British slang for the crisis, was recently named Australia's word of the year by the Macquarie Dictionary.

The latest Worldwide Cost of Living survey by eiu, our sister company, confirms that inflation remains high worldwide: the prices of 200 products and services that it tracks rose by an average of 7.4% over the past year. This is down slightly from 8.1% in 2022, but remains well above the average of 2.9% over the previous five years. Our map and chart below reveal which cities are the most expensive.

These Are the World's Most Expensive Cities_1

Tied in first place this year were Singapore and Zurich. Singapore is no stranger to the top spot: it has ranked as the priciest place to live in nine of the past 11 years. Groceries, alcohol and clothing in the international business hub can cost a small fortune.

The cost of a certificate needed to own a car (which the government wants to discourage) recently topped $106,000. Zurich, meanwhile, jumped five places from last year. Switzerland's largest city is perennially pricey; it came joint first in 2020 and rarely leaves the top ten.

Its rise to the top of the index is mostly because the Swiss franc has appreciated by more than 10% against the dollar over the past year. (The survey's benchmark city is New York, so if a country's currency strengthens its cities will generally move up the ranking.)

Western European cities, including Copenhagen, Dublin and Vienna, take around half of the top 20 spots. Rising prices are one reason. Another is that the European Central Bank raised interest rates six times in 2023 to tame inflation, which caused the euro to appreciate by 7% against the dollar. North American cities dropped in the ranking this year: New York, last year's joint most-expensive city with Singapore, fell to third place.

These Are the World's Most Expensive Cities_2

The three biggest climbers were Santiago de Querétaro and Aguascalientes in Mexico, and Costa Rica's capital, San José. Beijing was one of four Chinese cities among the ten biggest decliners in the ranking. That reflects the depreciation of the renminbi and the faltering of China's recovery from the pandemic. Moscow and St Petersburg fell furthest, plummeting by 105 places to 142nd and by 74 places to 147th, respectively. The rouble collapsed against the dollar because of Western sanctions on Russian oil and high levels of military spending.

In last year's report eiu predicted correctly that energy prices and supply-chain problems would ease in 2023. This year's ends on a more pessimistic note. Interest rates are unlikely to come down soon, which will constrain economic growth; energy prices could rise again if the Israel-Hamas war spreads across the Middle East; and El Niño—which began in June and will last well into next year—could yet push up food prices. “Cozzie livs” will remain popular into 2024.

Source: Economist

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Owen Li

Political

Restructuring China-US Relations in 2024 Is Fraught with Uncertainties_1

Two recent developments cast a bright light of hope for the future: the advancement of direct US-China military talks and the possible resumption of narcotics control discussions. These events are more than isolated diplomatic gestures. They represent a mutual willingness to stabilize one of the world's most important bilateral relationships.

The US-China relationship is an important fulcrum for balancing the global order. Its stability or lack thereof has far-reaching implications for regional and international peace and security. Progress in the military dialogue demonstrates that the US and China will be willing to work to manage and mitigate strategic risks. Similarly, the gradual resumption of narcotics control talks demonstrates the two countries' willingness to work together to address transnational challenges that affect the well-being of their peoples.

However, it is important to recognize that the path to restructuring this complex relationship is fraught with uncertainty. This uncertainty, to global and Chinese observers, is precisely another defining and certain effect of the evolution of American politics, like an absurd drama. The script of US politics has changed, and the relationship with China cannot be separated from that script and become a theater on its own.

Therefore, the China-US relationship is also affected by the uncertainty of the evolution of the domestic political drama in the US, and it is precisely because of this uncertainty that containing China will continue to be the main theme of US foreign policy, and the future development of China-US relations will still be full of conflicts. China is clearly aware of and prepared for this.

After a year marked by the US crackdown on Chinese enterprises and "made-in-China" on a broad scale, it is apparent that the US strategy to counter China's rise has solidified and is irreversible. In response, China is poised to adopt a more assertive stance, preparing for potential countermeasures and strategic "breakthroughs."

In the new year, China's advancements in high technology, exemplified by its burgeoning electric car industry, rebuilding the world trade networks, as well as playing an active peace role in international hot issues, signal a renewed momentum in its economic transformation and a more proactive diplomatic posture. These developments could play a critical role in reshaping US-China relations.

Looking ahead, the challenge for both countries is not merely to restructure their bilateral relationship but to redefine their political, economic and trade relations with the rest of the world. The concept of "decoupling" has dominated much of the discourse, but the future may demand a focus on "reconnecting" - establishing stable communication mechanisms and maintaining essential connections not only between the two countries, but also with the world. The scene begins to change to a wider international background.

Even more pressing is how both countries will forge new global connections. This will have a significant influence on the global supply and trade chains, as well as how the world order evolves.

The US, for its part, is likely to persist in its efforts to build coalitions aimed at marginalizing and containing China. US Secretary of State Antony Blinken's recent remarks underscore a commitment to engage China from a "position of strength" and leverage alliances in the Indo-Pacific region.

While such rhetoric has been overused, it reflects a broader strategic approach that extends beyond the bilateral relationship to encompass global geopolitical dynamics. The shifting focus of the international background raises the question of how China will navigate this environment, seeking to promote peaceful development conducive to its interests.

When people see more chaos from the political drama in Washington, especially when they no longer expect this hegemonic country to solve global problems, including existing wars and conflicts, their attention will gradually shift to the performance of China and other major countries in the global landscape.

The US will continue to rely on its own strength to contain China. However, as more and more countries seek to enhance bilateral or multilateral cooperation and approaches based on their own national interests, the US' pursuit will inevitably become gradually ineffective. China's approach to carving out its place in the global community may well be more consequential for the trajectory of this century than the specifics of US containment strategies.

Source: Global Times

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Glendon

Central Bank

Economic

Central banks from most major developed economies closed out 2023 with a blitz of policy meetings in December that effectively shut the books on the aggressive rate hikes that have dominated the economic and financial landscape since 2022. The lone outlier, the Bank of Japan (BOJ), never managed to kill off its negative rates policy and signaled last week at the year's final meeting of a Group of Seven central banks that a shift away from that stance was not imminent.

Allowing the rest of the big central banks to call time on rate hikes was the favorable turn inflation took over the course of 2023. After starting the year with annual inflation rates that were on average 3.7 times the 2% target shared by the U.S. Federal Reserve, European Central Bank (ECB), Bank of England, Bank of Canada and BOJ, the pace of price increases is now down to 1.5 times that target.

Of course that means more work to do to complete the "last mile" in the inflation fight. Central bankers are loathe to declare victory prematurely and are battling with over-eager financial markets to retain maximum optionality, prompting the drum beat of pledges to hold rates high for a longer period or raise them again if necessary - the latter in particular being seen increasingly as an empty threat.

Inflation, however, does not need to drop all the way to 2% in order for rate cuts to begin, and 2-handle inflation rates could soon be the norm.

Is the 'Big Ease' Coming in 2024 or Will Rate-Cut Hopes Get Dashed?_1

Is the 'Big Ease' Coming in 2024 or Will Rate-Cut Hopes Get Dashed?_2

WHY IT MATTERS

Holding rates steady as inflation rates slow further is another form of policy tightening that may not be appropriate for much longer.

That is something some Fed officials have begun openly bandying about as a reason for the rate cuts they flagged last week as being in the cards next year, especially if they hope to deliver a "soft landing" for the U.S. economy.

Keeping rates restrictive for longer than necessary risks a harsher outcome, one featuring a rapid slowdown in economic activity, a painful rise in unemployment and a recession that much of the world has managed to dodge so far despite that scenario being the more traditional end to rate-hike cycles.

Rate-sensitive economic sectors everywhere - such as housing and manufacturing - have felt the pinch of higher rates for more than a year.

While services activity generally has continued to expand, S&P Global's measure of manufacturing activity in developed economies has been in contraction since October 2022, although there are indications the worst may be over with the latest reading at the highest level since the spring. Emerging market factory output, which has been at stall speed for much of 2023, also edged higher.

WHAT IT MEANS FOR 2024

A major game of chicken is underway as market actors have set expectations for far more policy easing than central bankers are likely to be willing to provide.

For instance, while last week's projections from Fed officials themselves indicated they expect 75 basis points of rate reductions over the course of 2024, bond and rate futures markets are now positioned for twice that amount. That led at least one U.S. central bank official, Chicago Fed President Austan Goolsbee, to confess that he was "confused" by the market's behavior.

Across the Atlantic, meanwhile, sources familiar with the matter told Reuters it is unlikely that the ECB will be in position to cut rates before June, three months later than market pricing there now reflects.

The key to it all, of course, rests with inflation since policymakers have said they are willing to stomach some level of economic pain, if necessary, to finally return price pressures to their target levels.

Politics may play a hand as well, with general elections scheduled for later in the year, in the U.S and UK in particular. Central bankers who prize their political independence may not want to be seen taking major action too close to elections lest they be accused of trying to tip the outcome.

And as the year closed, a potential new spoiler was emerging that could complicate the rate-cut thesis: Attacks by Iran-backed Houthi rebels on cargo vessels in the Red Sea forced shippers to halt or reroute traffic, a supply chain hiccup that could impede further swift progress on inflation.

Source: REUTERS

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Chandan Gupta

Stocks

Traders' Opinions

As the US stock market gears up for its final 2023 trading week, a clearer narrative emerges. Recent inflation data indicates the Federal Reserve's progress toward its 2% inflation target, potentially paving the way for interest rate cuts.

Signs of recession are sparse; interest rates have eased from recent highs, with major indices like the Dow Jones and S&P 500 flirting with all-time highs. The Nasdaq Composite has surged by over 40% throughout the year.

In the upcoming week, investors eagerly anticipate whether the S&P 500 will clinch a new record, following the Dow's recent milestone. Economic focus narrows on Tuesday's home price data and Thursday's initial jobless claims report, while a quiet earnings calendar leaves markets awaiting substantial news.

It's worth noting that markets will be closed on Monday for Christmas. Stocks Near Record Highs as 2023 Ends: What's Ahead This Week_1

Inflation nears the Fed's target

Friday's inflation report showcased a meaningful step for the Fed in steering inflation back to its targeted 2%. The core PCE Price Index, which excludes volatile food and energy, revealed a 3.2% year-over-year increase in November, marking the slowest climb since April 2021.

Digging deeper into this data offers a crucial insight. The six-month annualized "core" PCE stood at 1.9% in November, indicating the Fed's proximity to its objective.

Despite recent attempts by some Fed members to temper expectations of rate cuts, analysts like Andrew Hunter from Capital Economics remain unconvinced. Hunter highlighted the sub-2% annualized pace of core PCE inflation over the past six months, suggesting that this last push for hawkishness isn't swaying market sentiment.

With mounting signs indicating a decrease in the post-pandemic inflation surge, Hunter foresees a significant cut in interest rates in the upcoming year.

Anticipation of swift rate cuts by the Fed next year has been a key driver behind the market's momentum in 2023.

While the AI-related excitement dominated the tech landscape after a lackluster 2022, the latter part of this year has pivoted significantly toward discussions around interest rates.

A dip in the US stock market during autumn coincided with Treasury yields soaring to levels not seen in 16 years. This surge occurred as concerns about persisting inflation pressures emerged, casting doubt on whether the Fed would ease its policies from their prolonged highs set over 22 years.

However, recent data, coupled with the Fed's projections, have assuaged many of these concerns.

Pursuing the year ahead: 2024 in focus

As 2023 wraps up with the stock market surging towards all-time highs, predictions for 2024 have already lost their freshness.

Goldman Sachs' equity strategy team recently upped their 2024 S&P 500 price target from 4,700 to 5,100.

Back in mid-November, when many in Wall Street began forecasting the year ahead, uncertainty loomed over the trajectory of inflation, economic growth, and the Fed's moves. Stocks Near Record Highs as 2023 Ends: What's Ahead This Week_3

Stocks Near Record Highs as 2023 Ends: What's Ahead This Week_3

As we approach the end of two eventful years in market history, Bespoke Investment Group highlighted some stats underscoring that history might relegate these post-pandemic fluctuations to obscurity.

On November 30, 2023, the S&P 500 closed at 4,567.80, almost identical to its close on the same day in 2021, at 4,567.00. In between, investors weathered the worst year in a generation, followed by one of the index's best five years since the financial crisis. However, as time moves forward from this period of stagnant stock movement, the intensity of both moments might fade from memory.

Bespoke also pointed out that during the 2022 sell-off, the seven largest S&P 500 stocks collectively lost $4.9 trillion, while this year, these same stocks gained back the same amount in market cap.

Looking into 2024, Wall Street forecasts suggest a cautious optimism among investors. While the S&P 500 typically gains around 9% annually, most predictions hover around a 5% increase for the coming year.

However, as observed by former Yahoo Finance managing editor Sam Ro, "average" years are rare in the stock market. Over the years, the S&P 500 has seen significant gains 33 times and losses 15 times since 1957, painting an unpredictable landscape.

Amidst these forecasts, it seems evident that Wall Street might again miss the mark on where stocks will land by next year's end. Bespoke's insights emphasize that seeking precision within a single year is an exercise in futility; in due course, the tumultuous gains or losses of any given year will flatten. Ultimately, the broader trajectory of market history follows its own course.

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Warren Takunda

Stocks

U.S. Stocks Respond Positively to Below-Forecast PCE Inflation

In a surprising turn of events, the U.S. stock market saw a notable surge on Friday as the latest Personal Consumption Expenditures (PCE) inflation data came in below forecasts. Both the S&P 500 and Nasdaq exhibited gains of approximately 0.4%, while the Dow Jones added nearly 60 points. The Federal Reserve's preferred core inflation gauge dropped to 3.2% in November, contrary to the expected 3.3%. This unexpected dip has fueled speculation that the Fed may initiate interest rate cuts in the coming year, contributing to the positive market sentiment.

Sector Performance and Corporate Highlights

Amidst the market rally, notable sector performances emerged. Energy, real estate, and utilities emerged as top performers, contributing to the overall market buoyancy. However, the consumer discretionary sector experienced a decline. Notably, sportswear giant Nike faced a significant setback, with its shares plummeting by approximately 10%. This downward spiral followed the company's downward revision of its sales outlook and the announcement of cost-cutting measures, including job reductions. Nike's challenges added a layer of complexity to an otherwise positive trading day.

The week has proven to be exceptionally favorable for U.S. stocks, with the three major averages set to record gains for an eighth consecutive period. The S&P 500 is up by 0.6%, the Dow Jones has gained 0.3%, and the Nasdaq has surged by 1%. This sustained positive momentum suggests resilience in the market, even amidst uncertainties and corporate challenges.

Technical Analysis

A closer look at the technical analysis reveals that the S&P 500 index demonstrated continued strength by surpassing the resistance at 4713. Despite a brief retreat on Wednesday, the market rebounded, indicating robust support at this strategic price level. The main target now lies at the central Key Resistance of 4800, set to be completed on June 4th, 2022. However, concerns about a potential market squeeze from the recently established Mean Resistance at 4769 may prompt a pullback to the Mean Support at 4700. This support level is considered robust, providing traders and investors with a strategic entry point.

The positive response of U.S. stocks to the PCE inflation data, coupled with ongoing technical strength, positions the market for potential future gains. However, challenges faced by individual companies, as exemplified by Nike, highlight the importance of a nuanced and comprehensive approach to navigating the evolving financial landscape. Investors and market participants are advised to remain vigilant and adapt their strategies to emerging trends and developments.

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JPMorgan

Economic

1. Economic growth is likely to decelerate in 2024 as the effects of monetary policy take a broader toll and post-pandemic tailwinds fade.

We expect real GDP growth to walk the line between a slight expansion and contraction for much of next year, also known as a soft landing. After tracking to a better-than-expected 2.8% real GDP growth in 2023, we forecast a below-trend 0.7% pace of expansion in 2024. Among the major components of GDP, consumer spending is likely to rise at a more muted pace next year, while fiscal spending could swing from a positive contributor in 2023 to a modest drag. Notable drops in business investment and housing activity in 2023 set the foundation for improved performance in 2024, even if the outlook remains muted amid higher interest rates; 2023 strength in services sector is likely to soften.

2. We assume the hiking cycle is over, leaving the Fed Funds on hold at 5.25%-5.5% until the middle of 2024.

If inflation continues its moderating trajectory over the coming quarters, we think it is likely the FOMC will start to slowly normalize policy rates near the midpoint of next year. We forecast 25 bps cuts at each meeting beginning in June, bringing the Fed Funds target range to 4.00%-4.25% at the end of 2024. Concurrently, quantitative tightening, the Fed's balance sheet runoff program, is expected to be maintained at the same pace through 2024. At $95 billion per month, quantitative tightening is projected to remove approximately $1 trillion from the economy next year.

3. The U.S. consumer could begin to bend, but not break.

There are numerous reasons to expect consumer spending growth to slow next year from its firm pace in 2023: diminished excess savings, plateauing wage gains, low savings rates and less pent-up demand. Additionally, the restart of student loan payments and uptick in subprime auto and millennial credit card delinquencies are emerging signs of stress for some consumers. On the flipside, household balance sheets and debt servicing levels remain healthy. Tight labor markets continue to support employment and therefore income levels. Considering the cross currents, we think consumer spending growth can stay positive overall in 2024, but at a lower rate than 2023.

4. The larger-than-expected fiscal boost to the U.S. economy in 2023 could flip to a slight headwind in 2024.

The fiscal deficit roughly doubled to $1.84 trillion—7.4% of GDP—in fiscal 2023 from $950 billion in 2022. While the full extent of this year's deficit expansion would not be considered stimulus in a classic sense, it is clear the federal government took in a lot less cash than it sent out. Looking to 2024, we expect the federal deficit to narrow to a still very large 5.9% of GDP, reflecting a bit of belt-tightening on the spending side partly offset by higher interest outlays on government debt.

5. Labor markets are showing signs of normalization to end 2023; unemployment could drift higher in 2024 while remaining low in historical context.

Momentum in the job market is starting to wane with slowing payroll growth and modestly rising unemployment, as well as declining quit rates and temporary help. Increased labor force participation and elevated immigration patterns over the past year have added labor supply, while a shortening work week indicates moderating demand for labor. Considering the challenges to add and retain workers coming out of the pandemic, businesses could be more reluctant than normal to shed workers in a slowing economic environment. Even so, less hiring activity could be enough to cause the unemployment rate to tick up to the mid-4% area by the end of next year due to worker churn. Already slowing wage gains should slow further in the context of a softer labor market.

6. Inflation trends are cooling, but likely to remain above the Fed's 2% target through 2024.

After reaching a four-decade high in 2022, inflation on both a headline and core basis has moderated significantly in 2023. Some categories have seen more improvement than others. For example, core goods inflation dropped from a peak of 12.4% in February 2022 to 0% in October 2023. Progress on core services inflation, which includes the sticky shelter category, has been slower. After peaking at 7.3% in February 2023, core services inflation was still running an elevated 5.5% in October 2023. We expect moderating shelter inflation in 2024 as the lag in market rents pricing should catch up in the inflation readings. We forecast core PCE prices—the Fed's preferred inflation metric—to rise 2.4% in 2024, down from 3.4% in 2023.

7. Housing sector activity has dropped 30%-40% over the past 18 months amid the surge in mortgage rates.

With housing affordability metrics at a 40-year low, combined with 75% of mortgages locked in at 4% or below, the U.S. housing market is effectively frozen. Real residential investment tumbled at a 12% seasonally adjusted annual rate over the past six quarters. Meanwhile, home values rose 6% in 2023—to near all-time highs—amid tight supply and historically low vacancies. Given the already large drop in recent years, we think the housing market is one area of the economy that could perform better in 2024 than in 2023, even if trends remain soft in the near term.

8. Supply chain bottlenecks are mostly in the rearview, while global supply chain restructuring will take time.

Over the past year, as inventory constraints and shipping costs have fallen, supply chain considerations have shifted from short-term tactics to longer-term strategies of minimizing costs while ensuring resiliency. Legislation passed in 2022 including the CHIPS and Science Act and Inflation Reduction Act provides incentive for certain strategic industries—including semiconductors and renewables—to onshore production. This has resulted in rising business investment in high-tech manufacturing structures over the past year. Bigger picture, we expect global supply chain adjustments to continue at a conservative pace, as even the simplest changes are both costly and complex.

9. Pressures on the commercial real estate sector are likely to intensify.

The higher-for-longer interest rate environment and challenges among small and regional banks are resulting in tightening of lending standards and slowing slow growth. This is occurring across all loan types, but most acutely for the commercial real estate sector, where small and regional banks have meaningful exposure. With nearly $550 billion of maturing commercial real estate debt over the next year, losses are expected to mount for lenders and investors. While we do not expect this to be a systemic issue, reduced lending activity and potential investor losses could be an economic headwind.

10. Geopolitical risks will remain top of mind.

Elevated trade tensions with China, the ongoing Russia-Ukraine war and conflict in the Middle East all point to continued uncertainties and risks heading into 2024. While direct U.S. economic impact has been limited thus far, the larger risk is for a supply shock of a critical commodity or good—energy, food, semiconductors—that triggers significant market disruption. Next year's U.S. presidential election could be more impactful than recent cycles on geopolitics given the backdrop of already elevated tensions.

2024 Economic Outlook: 10 Considerations for the Us Economy_1

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Chandan Gupta

Stocks

Forex

Traders' Opinions

Asian Market Performance

In Asia, market indices showcased a blend of gains and stability. Tokyo's Nikkei 225 witnessed a modest rise of 0.3%, reaching 33,254.03, while the Shanghai Composite index edged up by 0.1% to settle at 2,918.93. Concurrently, Taiwan's Taiex and Bangkok’s SET saw marginal upticks of 0.1%. The subdued trading activity could be attributed to most markets remaining closed due to the Christmas holiday.

Chinese Regulatory Impact

An intriguing development emerged from China, where regulatory announcements approving over 100 online games sought to stabilize the industry. This move was a response to a plunge in major game makers' stocks, such as Tencent and Netease, triggered by draft guidelines released earlier. These regulatory shifts in one of the world's largest gaming markets could have significant implications for the global gaming industry's future trajectory.

Wall Street Performance and Economic Reports

Meanwhile, on Wall Street, the S&P 500 wrapped up its eighth consecutive winning week, ending with a 0.2% gain, resting just below its record high set nearly two years ago at 4,754.63. The Dow experienced a marginal decline of less than 0.1% to 37,385.97, while the Nasdaq inched up by 0.2% to 14,992.97. This continuous upward trajectory of the S&P 500 marked its longest winning streak since 2017, reflecting market optimism.

Investor attention was captivated by a suite of economic reports released on Friday, which led to fluctuations in Treasury yields and market sentiments. The Federal Reserve's preferred inflation gauge slowed to 2.6% in November from the previous month's 2.9%, surpassing economists' expectations. This aligned with earlier November inflation reports, showcasing a more significant drop than anticipated.

Consumer Spending and Economic Indicators

November witnessed an unexpected uptick in U.S. consumer spending, a positive sign for an economy heavily reliant on consumer expenditures. However, this also hinted at persistent inflationary pressures. Additional reports highlighted that while orders for durable manufactured goods exceeded expectations, sales of new homes unexpectedly weakened. Despite this, consumer sentiment in the U.S. improved, reflecting mixed signals about the economy's underlying health.

Federal Reserve's Balancing Act

The Federal Reserve finds itself navigating a tightrope, aiming to control inflation by raising interest rates without pushing the economy into a recession. A robust economy, while promising for growth, could complicate this delicate balancing act. The 10-year Treasury yield stood at 3.90% on Monday, relatively stable compared to Friday's figures but significantly lower than the levels seen in October, which exerted substantial downward pressure on the stock market.

Impact of Declining Yields

The decline in yields has been a primary catalyst for the stock market's remarkable surge of approximately 15% since late October. Lower yields not only encourage borrowing, bolstering economic activity, but also alleviate strain on the financial system and elevate investment prices. This trend stems from hopes that inflation has cooled enough for the Federal Reserve to implement rate cuts through 2024.

Market Speculation and Currency Movements

Market speculation hints at expectations that the Federal Reserve might reduce its main interest rate by at least 1.50 percentage points by the end of the upcoming year, as per data from CME Group. Presently, the federal funds rate ranges between 5.25% and 5.50%, the highest level in over two decades. In currency markets, the U.S. dollar slightly weakened against the Japanese yen while the euro witnessed a minor increase.

Final Verdict

The intricate interplay of economic indicators, market movements, and regulatory shifts creates a dynamic financial environment globally. The Asian markets' mixed performance, Wall Street's upward momentum, and the Federal Reserve's tightrope walk in managing inflation and economic growth highlight the complexities and nuances shaping the contemporary financial landscape. The ongoing developments signify the need for astute analysis and a nuanced understanding of the multifaceted factors impacting the world economy.

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