National Westminister Bank PLC (NatWest), the world-famous British investment bank, listed the geopolitical problems of the global economy in its 2023 economic forecast report, unlike other investment banks.
In its report, NatWest drew attention to 7 countries that could strain the global economy. Undoubtedly, Russia and Ukraine lead these countries.
Russia Is, As Expected, The Biggest Threat To The Economy.
Since the initiation of Russian occupation on February 24, 2022, Ukraine has gained a distinct advantage. Despite Russia’s attempted frontline successes that remain unrealized, Ukraine is bolstered by generous moral and financial support from its Western allies.
NatWest report suggests that a harsh winter in Ukraine could result in economic strain across Europe and the USA. Additionally, it is suggested that Putin will not be inclined toward an immediate peace agreement. It appears this winter may bring about drastic changes for many countries impacted by these decisions.
NatWest has declared that, should a peaceful resolution be reached in the conflict, Moscow will still incur an extreme financial burden due to redistributing oil and gas on the international market. If Russia emerges victorious from this crisis, it will likely do so as a significantly weakened nation.
The Taiwan Front Could Cause Big Problems.
As the world stands on its toes in 2023, Taiwan is one of the most feared destinations, given Beijing’s increased pressure. Despite Chinese attempts to undermine Taiwanese sovereignty, the United States has continued to back Taipei. Furthermore, Russia’s actions in Ukraine remind China to think twice before attempting an all-out war against Taiwan. However, NatWest warns us that there is still potential for a devastating blockade by China on this small island nation.
NatWest warns of a hidden geopolitical issue in 2023, “trade wars.” China appears to be the main problem here; Beijing will likely adopt an economic stance that gives preference to those countries and entities which are close allies. NatWest has coined this idea as “the rise of soft power” for China.
