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American Focus > Blog > Economy > An ever riskier world economy
Economy

An ever riskier world economy

Last updated: June 10, 2025 8:44 am
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An ever riskier world economy
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The Editor’s Digest, curated by Roula Khalaf, Editor of the FT, offers readers a selection of her favorite stories in a weekly newsletter. In the latest issue, the focus is on the ongoing revolution in the American republic, spearheaded by Donald Trump, aimed at transforming the country into an arbitrary dictatorship. The impact of Trump’s governing style, characterized by lawlessness, unpredictability, anti-intellectualism, and nationalism, extends beyond the U.S. borders, affecting the global economy and stability.

The tariff war initiated by Trump has created uncertainty and a loss of confidence in the market economy. The World Bank’s analysis in the Global Economic Prospects report projects a significant slowdown in global growth due to the ongoing trade tensions. The unpredictable nature of Trump’s policies has led to concerns about potential declines in trade and investment, further exacerbating the economic challenges.

The World Bank warns of potential downside risks, including increased social, political, and fiscal fragility, leading to higher costs of finance and lower growth. The poorest countries are expected to bear the brunt of the economic downturn, with per capita GDP levels projected to be lower than pre-pandemic levels. Developing economies face a long road to recovery, with growth rates declining over the past three decades.

To mitigate the impact of these challenges, the report suggests liberalizing trade, attracting investment, improving human capital, and maintaining economic stability as key priorities. The need for free trade policies and international cooperation is emphasized, especially in the current turbulent environment. Larger economies like China, the EU, and Japan face complex choices in navigating the shifting global economic landscape.

In conclusion, the Editor’s Digest provides valuable insights into the current economic scenario and the challenges posed by the ongoing revolution in the American republic. By staying informed and understanding the implications of global trends, readers can better navigate the uncertainties and make informed decisions in an increasingly volatile world. Unlock the Editor’s Digest for free to access more exclusive content and analysis from the FT. In order to promote a more prosperous and cooperative world, countries must not only improve their own policies but also cooperate with one another to sustain global rules, particularly in areas such as trade. Global powers need to recognize the significance of global imbalances, focusing on macroeconomic imbalances rather than just trade policies.

As the United States takes a step back from its traditional leadership role, other countries are finding themselves in positions of greater influence and responsibility. Progress on issues like climate change and economic development hinges on the actions of these emerging powers. Addressing challenges such as excessive debt requires a departure from the current trend of growing suspicion and mistrust among nations.

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There is a growing concern that the world is moving away from efforts to create a more interconnected and prosperous global community. While some may argue that this shift represents a more realistic approach, it is essential to remember that we all share one planet and are interconnected in our destinies. Advances in technology have only reinforced the need for cooperation and mutual understanding.

We are at a critical juncture where the choices we make will have far-reaching consequences. It is imperative that we choose wisely and work together to address the challenges facing our world. By fostering collaboration and understanding among nations, we can build a more sustainable and prosperous future for all.

For more information on this topic, please contact martin.wolf@ft.com. You can also follow Martin Wolf on Twitter and stay updated on the latest developments in global cooperation and economic policy. The world is constantly changing and evolving, with new technologies being developed every day. One of the most exciting developments in recent years is the rise of artificial intelligence (AI). AI has the potential to revolutionize almost every aspect of our lives, from healthcare to transportation to entertainment.

One area where AI is already making a significant impact is in the field of medicine. With the ability to analyze vast amounts of data and identify patterns that humans might miss, AI has the potential to transform the way we diagnose and treat diseases. For example, AI algorithms can analyze medical images such as X-rays and MRIs to detect signs of diseases like cancer at an early stage, when they are most treatable.

AI is also being used to improve patient outcomes by personalizing treatment plans based on individual factors such as genetics and lifestyle. By taking into account a patient’s unique characteristics, AI can help doctors tailor treatments to be more effective and reduce the risk of side effects.

In addition to improving patient care, AI is also helping to streamline healthcare operations and reduce costs. AI-powered chatbots and virtual assistants can help patients schedule appointments, access medical records, and receive personalized health advice without the need for human intervention. This not only saves time and resources for healthcare providers but also provides patients with faster and more convenient access to care.

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Outside of the medical field, AI is also transforming industries such as transportation and logistics. Self-driving cars, powered by AI algorithms, promise to make roads safer and reduce traffic congestion by eliminating human error. AI is also being used to optimize supply chains and logistics networks, helping companies reduce costs and improve efficiency.

In the entertainment industry, AI is being used to create personalized recommendations for movies, music, and TV shows based on an individual’s viewing habits and preferences. Streaming services like Netflix and Spotify use AI algorithms to analyze user data and provide customized content suggestions, leading to a more enjoyable and engaging user experience.

While the potential benefits of AI are immense, there are also concerns about the ethical implications of relying on machines to make decisions that could have life-or-death consequences. Issues such as bias in AI algorithms, data privacy, and the potential for AI to replace human jobs are all important considerations that need to be addressed as we continue to integrate AI into our daily lives.

Overall, the rise of artificial intelligence represents a significant milestone in human history, with the potential to revolutionize industries and improve the quality of life for people around the world. By harnessing the power of AI responsibly and ethically, we can unlock its full potential and create a more efficient, sustainable, and equitable future for all. The Impact of Social Media on Mental Health

In today’s digital age, social media has become a ubiquitous part of daily life for many people around the world. With the rise of platforms like Facebook, Instagram, Twitter, and TikTok, individuals are constantly connected to others and exposed to a barrage of information and images. While social media has undoubtedly revolutionized the way we communicate and interact with one another, it also has a profound impact on mental health.

One of the most significant ways in which social media affects mental health is through comparison. When scrolling through social media feeds, individuals are often presented with carefully curated and edited images of other people’s lives. This can lead to feelings of inadequacy, jealousy, and low self-esteem as individuals compare themselves to others and feel as though they are not measuring up. This phenomenon has been coined “social comparison theory” and can have detrimental effects on mental well-being.

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Furthermore, social media can also contribute to feelings of isolation and loneliness. While it may seem counterintuitive, spending excessive amounts of time on social media can actually lead to feelings of disconnection from others. This is because virtual interactions do not always provide the same level of emotional support and connection as face-to-face interactions. As a result, individuals may feel isolated and lonely despite being constantly connected to others online.

Another way in which social media impacts mental health is through the spread of misinformation and fake news. With the rise of fake news and misinformation on social media platforms, individuals are often bombarded with conflicting information and may struggle to discern fact from fiction. This can lead to feelings of confusion, anxiety, and stress as individuals try to navigate the overwhelming amount of information available online.

Additionally, social media can also contribute to feelings of anxiety and depression. Studies have shown that individuals who spend excessive amounts of time on social media are more likely to experience symptoms of anxiety and depression. This is likely due to the constant exposure to negative news stories, cyberbullying, and unrealistic beauty standards that are prevalent on social media platforms.

Despite the negative impact that social media can have on mental health, there are ways to mitigate these effects. It is important for individuals to be mindful of their social media usage and to take breaks from their screens regularly. Additionally, seeking support from friends, family, or mental health professionals can help individuals navigate the challenges of social media and maintain their mental well-being.

In conclusion, social media has a profound impact on mental health, influencing feelings of comparison, isolation, loneliness, anxiety, and depression. While social media has revolutionized the way we communicate and connect with others, it is important for individuals to be mindful of the potential negative effects on mental health and take steps to protect their well-being. By being mindful of their social media usage and seeking support when needed, individuals can navigate the challenges of social media and maintain their mental health in the digital age.

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