People gather outside the headquarters of Silicon Valley Bank in California, the US, on March 13, 2023. (Photo: Xinhua/VNA) 1. Globaleconomic recovery slows down
The world’sleading financial institutions estimated that this year’s global economicgrowth will be lower than the increase of 3.3 - 3,5% in 2022 as a result of the“financial earthquake” triggered by the US and Swiss banking crisis, the energycrisis, and the conflicts in Ukraine and the Middle East. The central banks ofmany countries had to consider hiking interest rates to curb inflation or stoppingrate increases to aid economic recovery,
2. “Earthquake”on global financial market
Injust three days, from March 10 to 12, Silicon Valley Bank and Signature Bank, twomajor banks of the US, had to shut down due to liquidity losses when depositorswithdrew large sums of money. On May 1, First Republic Bank became the third inthe US to go bankrupt in nearly two months. In Europe, Credit Suisse, thesecond biggest bank of Sweden, also faced the risk of collapse. Timely financialassistance packages from governments and central banks of countries preventeda widespread banking crisis that might lead to an economic depression.
3.Rice export restrictions, climate change threaten food security
A worker carries rice bags at a market in Bangalore, India. (Photo: AFP/VNA) On July20, India, the world’s biggest rice exporter, suddenly banned the export of non-basmati white rice. The unexpected nosedivein rice supply from India, climate change impacts, and geo-political conflictsboosted prices of Thai rice – an Asian benchmark, to a 15-year high and encouragedstockpiling in many countries. These factors affected purchasing countries,especially poor ones in Asia and the south of the Sahara. The UK Global Food SecuritySummit outlined some solutions towards a sustainable and climate-adaptive foodsystem.
4.COP28 reaches historic deal to phase out fossil fuels
The 28th Conference of the Parties to the United Nations Framework Convention on ClimateChange (COP28) made a big breakthrough on December 13 when mentioning the “transition away from fossil fuels” in a joint statement for the firsttime. After almost three decades the UN climate change conference was held,countries reached consensus on gradually transitioning away from fossil fuels soas to reach the target of net zero emissions by 2050.
5. GenerativeAI applications become year’s phenomenon
Generativeartificial intelligence (AI) has become one of the booming technological trendsin 2023 after ChatGPT caused a “global fever” with 100 million users in lateJanuary, just two months after its debut. Generative AI has enjoyed a year of giganticdevelopment of functions. This breakthrough technology is revolutionising theways economic sectors operate, strongly changing the job market, and shapingthe future of work.
6. Worldgold prices break all-time highs
Gold bars at the Czech National Bank in Prague. (Photo: AFP/VNA) World goldprices on the December 4 trading session hit a record of 2,152.3 USD per ounce,and there haven’t been any signs showing the upward trend will stop. The continuous surgeis attributed to escalating geo-political conflicts and high inflation, turninggold into a safe-haven asset. Central banks have purchased an unprecedentedlybig amount of gold. The capital inflows into gold have affected marketsworldwide, caused declines on stock markets, and prolonged the depreciation ofthe US dollar.
A worker carries rice bags at a market in Bangalore, India. (Photo: AFP/VNA) 4.COP28 reaches historic deal to phase out fossil fuels
The 28th Conference of the Parties to the United Nations Framework Convention on ClimateChange (COP28) made a big breakthrough on December 13 when mentioning the “transition away from fossil fuels” in a joint statement for the firsttime. After almost three decades the UN climate change conference was held,countries reached consensus on gradually transitioning away from fossil fuels soas to reach the target of net zero emissions by 2050.
5. GenerativeAI applications become year’s phenomenon
Generativeartificial intelligence (AI) has become one of the booming technological trendsin 2023 after ChatGPT caused a “global fever” with 100 million users in lateJanuary, just two months after its debut. Generative AI has enjoyed a year of giganticdevelopment of functions. This breakthrough technology is revolutionising theways economic sectors operate, strongly changing the job market, and shapingthe future of work.
6. Worldgold prices break all-time highs
Gold bars at the Czech National Bank in Prague. (Photo: AFP/VNA) 7. EU imposes carbon tariffs on imports
On October1, the European Union (EU) began the trial phase of the Carbon Border Adjustment Mechanism (CBAM), the first step to impose tariffs on imports fromthe countries failing to meet environmental standards from 2024. The CBAM is considered an effective tool for encouragingnon-European businesses to reduce carbon emissions. Those businesses will losstheir competitive edge if they do not cut emissions during the productionprocess to meet the EU’s environmental regulations.
8. Central banks put the brakes on interest rate hikes
The headquarters of the US Federal Reserve (Fed) in Washington DC. (Photo: AFP/VNA) On June14, the US Federal Reserve (Fed) stopped raising interest rates after 10consecutive hikes from March 2022. On October 26, the European Central Bank (ECB)also ended its streak of 10 interest rate rises. More positive signals fromthe job market and inflation were the first grounds for Fed, ECB, and otherleading central banks to pause rate increases. The move has supported countriesto prevent their currencies from depreciating sharply compared to the US dollarand control foreign-currency debts.
9. EU,US issue unprecedented rules to protect cyberspace for users
On August25, the EU issued two pieces of legislation to control cyber technology, namelythe Digital Services Act and Digital Markets Act. On October 30, the US President signed the first executiveorder on AI to prevent risks to national security and economy. This was thefirst time in history the EU and the US had used rules to tighten control overonline content and activities of technology companies. Those legal documents forcethe companies to apply new methods to ensure safety in cyberspace.
10. Riskof international transportation crisis posed by attacks on arterial shippingroute through Red Sea
A Houthi military helicopter flies above the vessel Galaxy Leader in the Red Sea. (Photo: Reuters) Attacks by Yemen’s Houthi force against ships in the Red Sea since December3 has disrupted the transportation of oil and cargo between Asia and Europe. Shippingcompanies have diverted over 30 billion USD worth of cargo away from the Red Sea,which is an arterial shipping route for about 12% of global trade and also agateway to the Suez Canal. The attacks have posed a risk of a sea transportationcrisis and supply chain disruptions, which may boost oil prices, shipping costs, and inflation./.
On October1, the European Union (EU) began the trial phase of the Carbon Border Adjustment Mechanism (CBAM), the first step to impose tariffs on imports fromthe countries failing to meet environmental standards from 2024. The CBAM is considered an effective tool for encouragingnon-European businesses to reduce carbon emissions. Those businesses will losstheir competitive edge if they do not cut emissions during the productionprocess to meet the EU’s environmental regulations.
8. Central banks put the brakes on interest rate hikes
The headquarters of the US Federal Reserve (Fed) in Washington DC. (Photo: AFP/VNA) 9. EU,US issue unprecedented rules to protect cyberspace for users
On August25, the EU issued two pieces of legislation to control cyber technology, namelythe Digital Services Act and Digital Markets Act. On October 30, the US President signed the first executiveorder on AI to prevent risks to national security and economy. This was thefirst time in history the EU and the US had used rules to tighten control overonline content and activities of technology companies. Those legal documents forcethe companies to apply new methods to ensure safety in cyberspace.
10. Riskof international transportation crisis posed by attacks on arterial shippingroute through Red Sea
A Houthi military helicopter flies above the vessel Galaxy Leader in the Red Sea. (Photo: Reuters) VNA
