US government debt levels were “very, very high” due to the coronavirus, the world’s fourth-richest man recalled. “And there were already problems in the supply chain.”
“(The war) is likely to exacerbate the inflationary problems that first world economies have and force an increase in interest rates, which will eventually result in an economic slowdown,” he added.
If there is bad news for the first world, for developing countries there is worse. Gates assures that the health needs of the poorest nations, citing Africa as an example, would remain in the background and would be considerably affected because of “these big budget problems.”
The US Federal Reserve and other central banks in the world’s major economies have recently raised interest rates to counter rising inflation. This has sparked concerns that rates will rise too quickly and trigger a recession.
Nevertheless, Wall Street banks are divided on the severity of inflation’s impact on the economy, and there are some signs that rising inflation may have peaked.
Gates blogged in April that closing the wealth gap between rich and poor countries is essential to preventing another pandemic. “If we are serious about preventing the next pandemic, we must not just return to pre-crisis levels of aid, but increase investments in strengthening health systems (which will also help reduce the health gap). between rich and poor),” he wrote.
Source: Ambito
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