Displaying items by tag: Economy

11% of Lebanon’s population is over the retirement age (65), and 80% of retired people have no health care coverage. Previously Habeeb and Elham had a good life; they could eat meat, afford medicine and have the lights on. But those times are over. When Habeeb retired their income stopped and now the 80-year-olds face poverty and uncertainty. ‘There is no government pension when you are old, no one is helping. How can we pay our bills?’ asks Habeeb with tears in his eyes. Lebanon has one of the world's worst economic crises. The Lebanese pound has lost 90% of its value since 2019. The banking system crumbled with much of the elderly’s life savings. The young are abandoning Lebanon in search of a more dignified life. Lebanese lack electricity and water, and food and medicine are difficult to import. The aid group Medonations imports medication and provides it to those who need it, and there are a few relief outlets for the vulnerable.

The world is in a critical hunger situation. The global prevalence of moderate or severe food insecurity in 2020 was equal to the previous five years combined. Nearly one in three people globally (2.37 billion) did not have enough food in 2020. Moderate or severe food insecurity affects over 30% of the world. Covid-19 had a devastating impact on the global economy, triggering an unprecedented recession not seen since the Second World War, and the food security and nutrition status of millions of people, including children, will deteriorate if we do not take swift action. We can pray for God to inspire united humanitarian and peacebuilding policies in conflict-affected areas that will ease blockages to food distribution and develop avenues of safe transit of all aid. Pray for the UN to intervene in food supply chains so that costs of nutritious foods are lowered.

The Omicron variant has spread globally. Leaders hoping lockdowns and travel bans had ended now face disruptions that could affect their economies and popularity. Italy’s PM Mario Draghi has made economic recovery a cornerstone of his leadership, but he is under fire for enforcing some of the strictest vaccine mandates in Europe. His honeymoon period could be derailed if further lockdowns or disruptions send the economy into a nose-dive. Inflation and supply-chain chaos are headaches for America. Uncertainty over Omicron threatens to make things worse after a wobbly economy and a shambolic departure of troops from Afghanistan. Biden’s handling of the pandemic previously inspired voter confidence but has now caused his popularity to drop. It is unlikely that he will take risks that could harm the US economy. China’s president is pursuing an increasingly elusive zero Covid strategy. If Omicron is more transmissible than previous variants, China's leadership could be questioned domestically.

There are many smart, educated women who could drive Japan out of its economic slump to a stunning economic recovery, but the rigid hiring system and male-dominated leadership block women from the best-paid jobs. Japan risks becoming a nation of bored housewives with university degrees. Parliament declared it would significantly increase the number of women in leadership by 2020, but the deadline quietly came and went without getting close to its target. Critics believe the aim had little to do with women thriving at work and more to do with an acute need for workers. The working-age population has been rapidly shrinking since the 1990s. Many women are stuck in part-time or dead-end roles which pay 40% lower than men. Companies are reluctant to have more women in their workforces, but the drive for change could come from international companies hiring graduates with gender equality.

Coronavirus restrictions are easing, and Germany’s economy is picking up as traders and service providers benefit, but industry suffers delivery problems. Global lockdowns have lowered production levels and interrupted supply chains. Essential raw materials, chemicals and component parts are in short supply and prices are skyrocketing. There are disruptions in container shipping, traffic congestion in ports and a shortage of containers, where three consortia control over 80% of the world market and dictate prices. For various reasons, the highest inflation since 2008 is on the horizon. In addition to the CO2 tax, world market prices for grain, which have risen 30%, are already raising the cost of living. Germany is an exporting country, dependent on international value-added trade-chains. There is now changed thinking concerning regional supply chains within the EU: now, instead of ‘just in time delivery’, storing becomes important.

Rishi Sunak has set out tax and spending plans to help business and people through the pandemic and support long-term economic recovery. Although the economy shrank by 10% in 2020, it is forecast to rebound in 2021, with projected growth of 4% and a return to pre-Covid levels by the middle of 2022. Pray that these projections will be met or exceeded, and the Government’s actions will fulfil the promises of recovery for those remaining on furlough. Pray for easy access to the promised increased Working Tax Credit and Universal Credit for those in need. May the budget bring relief to the 700,000 unemployed. We can thank Him for £1.65bn to support vaccination rollout and £19m for domestic violence programmes and networks of respite rooms for homeless women. However, the shock of coronavirus on our economy won't be fixed overnight. May God give our Government wise strategies progressively to reduce debt.

Christian MPs have shared their views on the Chancellor's economic plan. Shadow work and pensions secretary Jonathan Reynolds said, ‘What are we going to do to help 16-24 yr olds who have not even gone into the labour market yet? I didn't hear enough on that. I don't think there was any mention of the NHS or social care; nor of teachers and schools, when we have this massive educational challenge ahead of us. I felt it wasn't looking long-term enough.’ Conservative MP Sir Desmond Swayne said Mr Sunak's timetable was ‘masterful’, adding, ‘We will have to pay for it, and that was an important message to have got across’. Former Labour politician and Christian peer Frank Field said it was the best budget he had seen in his 42 years in politics, saying it met current needs and set out a plan for the future. For many more Christian insights, click the 'More' button.

Researchers calculate that £190 billion is needed to get the UK economy back on track – four times as much as the chancellor has committed so far, and a figure which broadly matches the ambition of US president Joe Biden’s new administration. This UK stimulus should be devoted to supporting businesses, workers, and households hardest hit by the pandemic, restoring public services and helping the growth of sustainable, ‘future-proof’ industries and jobs. The thinktank said, ‘Failure to deliver such a boost risks condemning the UK to a stagnation trap with about half the rate of economic recovery. It would mean lower business investment and leave unemployment at more than 10 per cent in spring 2022.’

At his spending review on 25 November, the Chancellor of the Exchequer set out the Government’s plans for public spending. It is an important fiscal event, with decisions made over hundreds of billions of pounds of public money. It is also an important political event, as the government sets out relative priorities and allocates funding towards achieving its policy objectives. The initial reaction from the Institute for Fiscal Studies was this: ‘Rishi Sunak has been spending truly astonishing amounts of money this year and plans to continue to do so next year in response to Covid. Yet this was a spending review in which he reduced planned spending into the future, cutting over £10 billion from departmental spending plans next year and for subsequent years.’ (See also the next article.) Pray for the 1.3 million public sector workers who will see their pay frozen in 2021-2 and for the projected 2.6 million unemployed by spring. See

Perú's parliament will impeach President Vizcarra for blocking an investigation into mis-use of public funds. He swept into power with an anti-corruption agenda. He denies ‘moral incapacity‘, despite audio recordings of him misusing funds. They have provoked a public outcry in pandemic-stricken Perú which now has the highest Covid death rate per capita in the world. Perú's economy is also struggling to recover from the three-month shutdown of the mining sector due to coronavirus. Pray for lawmakers to ensure corruption is replaced with honest reliable leadership. Pray for wise business transactions and a speedy economic recovery for commerce and industry that has seen quarterly GDP plummet by over 40%. Pray for successful strategies to halt the spread of coronavirus. Meanwhile missionaries are working to reach the thousands of Chinese migrants now settling in Peru: pray for believers from their ministry (see).