Inflation Threatens Economic Emergence

A recent warning by the World Bank highlighted the negative impact inflation could have on the economies of several countries, especially concerning economic emergence. The report points out that on average, consumers will spend 2.7 per cent more money for the same goods in 2018 than they did in 2017. In other words, 100 dollars last year is equivalent in purchasing power to 102.87 dollars in 2018. Consequently, the inflation rate in 2017 stood at 2.13 per cent as compared to 2.70 per cent this year. According to the International 
Monetary Fund (IMF) World Economic Outlook findings, countries identified as facing the highest inflation this year are: Venezuela (254.9%), Democratic Republic of Congo (22.4%), Malawi (21.7%), Mozambique (19.2%), Zambia (17.9%), Ghana (17.5%), Nigeria (15.7%), and Kazakhstan (14.6%). High inflation simply means more challenges for the economy and people because the value of money reduces except interest rates are higher. In addition, if the inflation continues, it will be difficult to have any returns on savings.  Faced with development issues in most countries and the ambition to attain emergence, , 
especially by African countries, the problems of inflation can be real cause for concern as stated by most experts. The issues raised by the World Bank in its report are also intended to ensure that consumer prices index (CPI) that serve as measuring instrument for inflation are likely to have a negative impact on both national and individual growth, thereby creating much poverty.  At the country level, financial analysts point out that, “If one country has a much higher rate of inflation than others for a considerable period of time, this will make its exports less competitive in the world market. Eventually, this may 
show through in reduced export orders, lower profits and fewer jobs, and also in a worsening of a country’s trade balance. A fall in exports can trigger negative multiplier and acc...

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