As the US Federal Reserve aggressively increases interest rate to control inflation, economists are growingly concerned about the impact of the higher interest rate on world growth, especially among developing and poor countries. The World Bank, in its June 2022 Global Economic Prospects report forecasts that world growth will slow to just 2.9 per cent in 2022 after growing by 5.7 per cent in 2021 and is at risk of falling into stagflation.(1500 wrds limit)

Propose strategies that a business may implement to mitigate the impacts of the situation.

1) You may prepare yur report by: Identifying the main factors that affect the current economic situation.

2) Summarising how governments (including central banks) are likely to respond to the rising inflationary pressure and slowing growth.

3) Describing strategies that businesses may implement in dealing with the challenging business environment, considering the likely government policies.