The recent scuffle between India and China is not an isolated event but the real concern is that it is becoming a pattern. A few more questions that come to our mind are – Why is this happening now and could the tension trigger a military conflict?
An immediate impact was seen on the UK economy after the referendum. A 2018 study shows that there was a loss of 2.5% of GDP on the UK economy, spending fell by 6%, unemployment grew by 1.5% and per capita income fell by 1%.
China’s increasing influence challenges the status of the US, which has been the world’s lone superpower for decades. Isolation is a trend in the US that means that it invests less and thus loses influence throughout the world. The BRI is the manner in which China leverages influence to become a world leader.
The warning came as the IMF said that in 2020, the global economy would grow by an estimated 3.3%, down from a previous forecast of 3.4%. Growth is expected to be 0.2 percentage points lower than originally projected at 3.4 percent in 2021.