Financial incentives of governments during the coronavirus pandemic allowed consumer spending to grow. Thus, the proposal ceased to manage to demand, leaving it dissatisfied due to the deficit, which The Economist called the main obstacle to the growth of the global economy.
As the publication notes, world incentives for maintaining the economy in the amount of 10.4 trillion dollars during the coronavirus pandemic allowed buyers to spend more on goods than usual. At the same time, consumer demand could not be satisfied due to global supply chain failures. Production decreased, since different sectors have encountered a lack of raw materials, trade containers, warehouses and truck drivers.
As noted by the publication, the existence of the global financial system in conditions of deficit supports two factors: decarbonization and protectionism. The Economist emphasizes that trade does not occur for considerations of financial efficiency, and a number of goals are pursued: from imposing labor and environmental requirements abroad to punish geopolitical opponents. For example, in the EU, the adopted carbon tax will have to pay for importers for importing products, in the production of which harmful substances are distinguished into the atmosphere.
According to the International Monetary Fund (IMF), unsatisfied consumer demand and accumulated savings, fueled by incentives from the states, caused inflation growth. Together with them, the impact was provided by rapidly growing prices for commodities, lack of production resources and failed supply chain.