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Strikes, protests and disruption
The cost-of-living crisis, shaped by record-high inflation, is escalating civil unrest and travel disruptions. Gas prices soar in Europe, while Russia’s invasion of Ukraine pushes up food prices globally.
Lockdowns under China’s “zero-COVID” policy continue to weigh heavily on the global economy, while a sharp appreciation of the United States Dollar (USD) adds to price pressures in developing economies. Periods of extreme weather will only aggravate the situation.
Workers will strike and demonstrate more frequently over inadequate wages, possibly escalating into indefinite service and travel disruptions, including across Europe. Major transport and public sector strikes have taken place across Europe in the past two years, especially in France, Italy, the United Kingdom (UK), Spain, Belgium, the Netherlands and Germany, driven by wages failing to keep up with inflation and staffing shortages caused by the COVID-19 pandemic.
Global growth outlook
Source: IMF
Airport operations have been hit hard as well, causing regular hours-long delays and cancellations on short notice through hubs in Frankfurt, Amsterdam, Brussels, Paris, Lisbon, Budapest and London.
Major social unrest over price hikes is likely to occur in countries around the world. Governments unable to pay their way out of the crisis are likely to further resort to repressive measures.
Global inflation outlook
Source: IMF
In Europe, the risk of further disruptive protests is also high as the Russia-Ukraine War enters its second year, with high inflation and energy price hikes bringing out huge crowds and calls for changes of government.
Inflation rate, average consumer prices 2022
Source: IMF
By Eeva Ruuska
