Business Developments Summary: June and July 2024

As we navigate through the summer months of June and July 2024, significant economic developments have emerged across various regions and countries. This summary will be highlighting key changes in the economy, emphasizing the enduring value of paper money amidst evolving financial landscapes.

Global Overview

The global economy has faced challenges, with inflation rates fluctuating quite a bit. In June 2024, the global inflation rate was recorded at 5.2%, while July saw a slight increase to 5.5%. This rise can be attributed to ongoing supply chain disruptions and increased demand as economies continue to recover from the pandemic.

As some of the giant economies slow down and cargos are emptied and delays are observed all along the regions, smaller markets have a little air to breathe and establish some new grounds in their own respective markets.

Coming back to Azerbaijan, during Q3 and 4 of 2023 alone more than 10 new logistics companies have been established which mainly are focusing on new niche markets and working with multiple locations in China.

North America

In the United States, inflation reached 4.8% in June and 5.1% in July. The Federal Reserve's monetary policy adjustments aimed at stabilizing prices have led to discussions about the potential for further interest rate hikes. The resilience of the U.S. dollar remains a focal point, reinforcing the importance of paper currency in transactions despite the rise of digital payments.

Questions have been getting more emotional response from mid class and low class and the devaluation rumors become more extreme on mighty dollar world. Some countries have revised their currency games and we might be looking into longest October season before Covid era.

Europe

The Eurozone experienced inflation rates of 6.0% in June and 6.3% in July. Economic growth has been uneven, with countries like Germany and France showing signs of recovery, while others struggle with high energy costs. The European Central Bank's cautious approach to monetary policy highlights the delicate balance between stimulating growth and controlling inflation.

Impact of Energy Prices: The surge in wholesale power and gas prices has led to significantly higher energy bills across Europe, pushing many vulnerable households into fuel poverty . The European Union is exploring various strategies to mitigate these impacts, including direct income support for affected households and tax reductions.

Long-term Solutions: Experts suggest that while immediate relief is crucial, there is also a need for longer-term strategies to address the underlying issues of energy dependency and market volatility. This includes promoting energy efficiency and potentially restructuring how energy is sourced and priced. The EU's approach to negotiating with gas suppliers as a unified bloc could also play a critical role in stabilizing prices.

Asia-Pacific

In Asia, inflation rates varied widely. For instance, Japan reported an inflation rate of 3.2% in June and 3.5% in July, driven by rising import costs. Meanwhile, China's inflation remained relatively stable at 2.5% for both months, reflecting effective government measures to manage price levels. The continued reliance on cash transactions in many Asian markets underscores the value of paper money in everyday commerce.

Recent shut down on several banks in China still remains a major psychological barrier to many who lost most of their assets probably indefinite.

Some political shakes that happening in Indian continent also contributes in low spend of the population and growing emotional tensions in mid to low classes. Both the middle and low classes in India are navigating a challenging economic landscape characterized by rising costs, feelings of neglect, and increasing inequality. The government's efforts to support these groups have been met with skepticism, and there is a pressing need for more effective policies that address the root causes of their struggles. As the situation evolves, the economic well-being of these classes will be crucial for India's overall stability and growth.

Latin America

Latin America faced significant inflationary pressures, with countries like Argentina experiencing rates exceeding 100%. In June, Argentina's inflation was reported at 105%, slightly decreasing to 102% in July. The volatility in currency value has led to a resurgence in the use of paper money as a more stable medium of exchange compared to digital currencies.

Personally, I do believe if focused on locally available health products that are already tending on social media channels like Instagram and TikTok by so called "health guru's", like Argentinian tea, some vegetables that are specific to the region with multiple health benefits, that could be another security blanket in the short run.

As we reflect on the economic developments of June and July 2024, it is clear that while digital transactions are on the rise, the value of paper money remains significant. In times of economic uncertainty, cash provides a tangible asset that can help individuals and businesses navigate financial challenges. The ongoing discussions around monetary policy and inflation will continue to shape the economic landscape, making it essential for businesses to adapt and strategize accordingly.

Stay informed and connected as we move forward in this dynamic economic environment!

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Leyla Rasulzade

Strategic Business Development | B2B | Building High-Value Partnerships | Consultant on Mid -Eurasian & Asian Art Markets | Consulting on Building Personal Brands