Production in Buryatia's industrial sector significantly plummeted.
The drift is evident across nearly every sphere.
Here's the lowdown on why that's happening:
- Economic Slowdown Worldwide: The global economy is facing a slowdown in growth. Instead of the forecasted 3.3% expansion in 2024, it's projected to drop to 2.9% in both 2025 and 2026[2][4]. This slowdown reduces economic activities worldwide, dampening consumer spending in various sectors.
- Uncertain Trade Policies: The escalating trade pressures and policy uncertainty, primarily regarding tariffs, are to blame for quite a bit of the instability. Businesses find it tough to plan and invest with this uncertainty, leading to decreased confidence and, ultimately, growth[4][5].
- Tight Financial Conditions: Squeezier financial conditions make loans pricier and credit less accessible, which can stifle both investments and consumption across multiple sectors[4][5].
- Inflationary Strain: Rising inflationary pressures, driven in part by increased trade costs due to tariffs, up production costs and decrease purchasing power, impacting sectors sensitive to price changes[2][4].
- Divergent Growth Trajectories: The global economy is seeing diverging growth patterns across different regions and sectors. This divide can lead to uneven impacts on various sectors, with some being hit harder than others[5].
In essence, these factors combined create a testing environment for many sectors, resulting in a noticeable decline in economic activities.
The economic slowdown worldwide and the uncertain trade policies are affecting various industries, particularly those sensitive to price changes. Tight financial conditions are making it difficult for sectors reliant on investments to thrive, while inflationary strain is decreasing purchasing power, impacting consumer-driven industries.
