The world is becoming smaller and smaller and hyper-globalisation (the dramatic increase in countries’ dependence on each other) has been a hot topic for many global leaders. This explains why restaurant owners in Lagos are now paying over ₦600 for diesel (from about ₦290 in January) following supply constraints as a result of the Russia-Ukraine war.
Key takeaways:
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The US Fed has increased its benchmark interest rate to tame record high inflation caused by the government’s response to Covid-19.
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This has increased the cost of borrowing. In response to this, investors have started migrating from equities and stocks to more stable assets. There have also been mass layoffs and funding pauses.
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In emerging countries like Nigeria, investment outflows that began in 2020 will continue, and the cost of borrowing to fund its budget will keep increasing.
The adverse effects of hyper-globalisation have been so evident since the onset of the
